Branch  of  the  College  of  Agriculture 
Davis,  California 


MANAGEMENT  OF  DAIRY  PLANTS 


THE  MACMILLAN  COMPANY 

NEW  YORK   •    BOSTON   •    CHICAGO    •  DALLAS 
ATLANTA    •   SAN  FRANCISCO 

MACMILLAN  &  CO.,  LIMITED 

LONDON    •  BOMBAY    •  CALCUTTA 
MELBOURNE 

THE  MACMILLAN  CO.  OF  CANADA,  LTD. 

TORONTO 


MANAGEMENT   OF    DAIRY 
PLANTS ' 


BY 

M.  MORTENSEN 
i) 

PROFESSOR  OF  DAIRYING  AT  IOWA  STATE  COLLEGE 


THE  MACMILLAN  COMPANY 
1921 

All  rights  reserved 


COPYRIGHT,  1921 
BY  THE   MACM1LLAN   COMPANY 


Set  up  and  electrotyped.    Published  January,  1921. 


PREFACE 

THE  larger  portion  of  the  material  presented  in  this  book  has 
been  collected  by  the  author  during  the  fourteen  years  while 
he  was  engaged  in  commercial  dairy  work.  Much  has  also  been 
obtained  from  the  experience  of  others.  The  author  has  during 
the  past  ten  years  taught  the  subject  of  creamery  management 
to  students,  and  the  material  presented  in  this  book  has  been 
given  to  the  students  in  the  form  of  lectures. 

Acknowledgment  is  due  to  Professor  F.  W.  Beckman  of  the 
Department  of  Agricultural  Journalism  of  Iowa  State  College 
for  his  valuable  assistance,  particularly  with  the  chapter  on 
Advertising,  which  was  largely  written  by  him,  also  to  Pro- 
fessors B.  W.  Hammer,  A.  W.  Rudnick,  and  M.  R.  Tolstrup, 
who  have  all  assisted  in  this  work. 

The  author  is  indebted  to  the  following  parties  for  the  use  of 
electrotypes  and  illustrations:  Creamery  Package  Manufac- 
turing Company,  Chicago,  Illinois;  J.  G.  Cherry  Company, 
Cedar  Rapids,  Iowa;  York  Manufacturing  Company,  York,  Pa.; 
Vilter  Manufacturing  Company,  Milwaukee,  Wisconsin;  Madi- 
son Cooper  Company,  Calcium,  N.  Y.;  National  Dairy  Council, 
Chicago,  Illinois;  The  Wisconsin  Experiment  Station,  Madison, 
Wisconsin;  Kansas  Experiment  Station,  Manhattan,  Kansas; 
and  the  Dairy  Division,  Department  of  Agriculture,  Washing- 
ton, D.  C. 

M.  MORTENSEN. 
Iowa  State  College, 

December,  1920. 


CONTENTS 

CHAPTER  PAGE 

I.  Preliminary  Survey  of  Conditions I 

II.  Form  of  Organization 1 1 

Copartnership 1 1 

Corporation 14 

Mutual  Cooperative  Creamery  Association 18 

Joint-stock  Company 21 

III.  Creamery  Construction 24 

Floor  Plan 24 

Foundations,  Walls  and  Brickwork 30 

Roofs 36 

Painting 37 

Ventilation 38 

IV.  Sewage  Disposal 4° 

Sewer  System 40 

Cesspool 43 

Septic  Tank 44 

V.  Refrigeration 49 

Insulation 49 

Systems  of  Refrigeration 58 

Natural  Refrigeration 58 

VI.  Mechanical  Refrigeration 68 

General  Discussion 68 

Compression  System 69 

Absorption  System 81 

^C  VII.  Labor 84 

Organizing  a  Strong  Working  Force 84 

Paying  for  Labor 92 

-—-VIII.  Purchase  of  Milk  and  Cream 100 

System  of  Dealing  with  Patrons 100 

Systems  of  Milk  and  Cream  Purchase  and  Delivery 108 

Purchasing  Equipment  and  Supplies ...  123 

The  Buyer 123 

How  to  Buy 125 

Records , 126 

vii 


~JL 


Vlll  CONTENTS 

CHAPTER  PAGE 

X.  Cost  of  Power  ..........................................  131 

Steam  Power  .........................................  131 

Gasoline  for  Power  ....................................  140 

Kerosene  for  Power  ...................................  141 

Electric  Power  ........................................  141 

XI.  Pasteurization  ..........................................  143 

A.  Cost  of  Pasteurization  ..............................  143 

B.  The  Economic  Efficiency  of  Pasteurizing  Machinery.  ...  150 
XII.  Cost  of  Water  ..........................................  158 

A.  Power  Required  for  Pumping  Water  ..................  158 

B.  Water  Pumps  .....................................  160 

C.  Economy  in  Pumping  Water  at  the  Creamery  .........  162 

XIII.  Rent,  Depreciation,  Interest,  and  Insurance  ................  163 

A.  Rent  ..................................  ...........  164 

B.  Depreciation  ......................................  165 

C.  Interest  ...........................................  165 

D.  Insurance  .........................................  163 

XIV.  The  Butter  Overrun  and  the  Relation  between  Chemical  Com- 

position of  Butter  and  Overrun  .......................  168 

The  Butter  Overrun  ...................................  168 

Relation   between   Chemical   Composition   of   Butter  and 

Overrun  ...........................................  170 

XV.  Mechanical  Losses  and  Their  Influence  on  Butter  Overrun.  .  .  .  181 

Losses  that  Occur  during  the  Manufacturing  Process.  ......  181 

Losses  Due  to  Inaccuracy  in  Weighing  and  Testing  ........  188 

Per  Cent  Overrun  which  may  be  Legally  Obtained  ........  195 

XVI.  Cost  of  Manufacturing  Butter  ............................  198 

XVII.  Profits  Obtained  from  the  Manufacture  of  Ice  Cream  ........  203 

A.  Cost  of  Material  ..................................  203 

B.  Yield  of  Ice  Cream.  .................................  218 

C.  General  Expenses  in  Manufacturing  Ice  Cream  ........  221 

XVIII.  Marketing  of  Dairy  Products  .............................  226 

A.  Salesmanship  ......................................  226 

B.  Methods  of  Marketing  ..............................  231 

C.  Office  Records  ....  .......................  ...........  237 

XIX.  Cost  of  Marketing  Dairy  Products  ........................  245 

A.  Cost  of  Marketing  Butter  ..........................  245 

B.  Cost  of  Marketing  Cheese  ...........................  253 

C.  Cost  of  Marketing  Ice  Cream  ........................  254 

D.  Cost  of  Marketing  Milk  and  Cream  ..................  258 


CONTENTS  IX 

CHAPTER  PAGE 

XX.  Preparing  the  Butter  for  Market 272 

A.  Butter  Packages 272 

B.  Packing  the  Butter 277 

/XXI.  Advertising  Dairy  Products 281 

The  Purposes  of  Advertising 282 

Essentials  in  Creamery  Advertising 287 

Mediums  for  Creamery  Advertising 294 

Planning  and  Writing  the  Advertisement 299 

XXII.  Business  Correspondence 309 

A.  The  Appearance  of  Letter 309 

B.  Parts  of  a  Letter 312 

C.  The  Form  Letter 317 

D.  Filing  of  Correspondence 318 

.  Credits  and  Collections 319 

A.  The  Credit  Man 319 

B.  Fact  upon  which  the  Credit  Man  Bases  his  Judgment. .  .  320 

C.  Office  Records  of  Credit  Information 323 

D.  Collections 325 

.  Creamery  Bookkeeping 332 

A.  Definition  and  General  Information 332 

B.  Record  of  Purchases 335 

C.  Record  of  Sales 341 

D.  Record  of  Inventory 342 

E.  Profit  and  Loss 345 


LIST  OF  ILLUSTRATIONS 

PAGE 
FIG.    i. — Large  windows  in  front  expose  the  interior  of  the  factory  to 

the  view  of  passers-by 25 

FIG.    2. — The  arrangement  of  the  creamery  is  influenced  by  the  loca- 
tion of  the  railroad  track 27 

FIG.    3. — A  well-arranged  floor  plan  for  a  small  creamery 29 

FIG.    4. — Details  of  construction 32 

FIG.    5. — A  sewer  system  that  is  readily  cleaned 40 

FIG.    6. — Bell  trap 41 

FIG.    7. — Siphon  trap 42 

FIG.    8. — Catch  basin 43 

FIG.    9. — Sections  showing  the  construction  of  a  septic  tank 47 

FIG.  10. — Sections  of  insulated  walls  by  Ruddick 55 

FIG.  ii. — Section  showing  construction  of  floor  and  wall  insulated  with 

cork  or  lith 57 

FIG.  12. — Section  showing  perfect  air  circulation  in  an  ice  bunker  refrig- 
erator  59 

FIG.  13. — Insulated  ice  house 61 

FIG.  14. — The  Cooper  gravity  brine  system  and  chloride  of  calcium 

process 63 

FIG.  15. — Method  of  connecting  refrigerating  systems 71 

FIG.  1 6. — York  single-acting  ammonia  compressor 74 

FIG.  17. — Vilter  double-acting  ammonia  compressor 75 

FIG.  18. — An  atmospheric  ammonia  condenser 77 

FIG.  19. — A  double-pipe  ammonia  condenser 79 

FIG.  20. — System  for  artificial  ice  making t 82 

FIG.  21. — Map  of  the  territory 105 

FIG.  22. — Midget  vest  pocket  press in 

FIG.  23. — Plant  equipped  with  water-heating  apparatus 139 

FIG.  24. — Pasteurizer  with  the  Danish  Experiment  Station  Improve- 
ments    154 

FIG.  25. — Reading  a  butter-fat  test 194 

FIG.  26. — Storing  butter 251 

FIG.  27. — Public  weigh-house,  Alkmar,  Holland 252 

xi 


Xll  LIST  OF    ILLUSTRATIONS 

PAGE 

FIG.  28. — Wisconsin  cheddar  cheese  production,  1911 255 

FIG.  29. — Cheddar  cheese  shipments  from  Wise,  1911 255 

FIG.  30. — Total  expense  of  milk  distribution  per  quart 263 

FIG.  3 1 . — Percentages  of  total  costs  per  quart  by  size  of  total  business. .  .  263 

FIG.  32. — A  refrigerator  butter  carrier 273 

FIG.  33. — A  butter  tub  paraffiner 273 

FIG.  34. — Advertising  the  food  value  of  dairy  products 285 

FIG.  35. — Advertising  the  food  value  of  dairy  products 285 

FIG.  36. — A  well-designed  trade-mark 290 


LIST  OF  FORMS 

PAGE 

FORM              I. — Application  for  Position  as  Buttermaker 85 

FORM             II. — Information  Blank 86 

FORM           III. — Creamery  Productive  Labor  Cost  Record 95 

FORM            IV. — Creamery  Proportioned  Yearly  Labor  Recor.d 99 

FORM              V. — Creamery  Field  Record 106 

FOVM            VI. — Monthly  Record  of  Patrons 107 

FORM          VII. — Receiving  Clerk's  Can  Record 112 

FORM         VIII. — Daily  Cream  Receiving  Record 113 

FORM            IX. — Driver's  Report 118 

FORM             X. — Route-Checking  Record 119 

FORM           XI. — Station  Report.  . 121 

FORM          XII. — Creamery  Order  for  Supplies 128 

FORM        XIII. — Inventory  of  Supplies 129 

FORM        XIV. — Kind  of  Supplies 130 

FORM          XV. — Insurance  Record 167 

FORM        XVI.— Churn  Record 189 

FORM       XVII. — Daily  Cost  Record  and  Manufacturing  Report 202 

FORM     XVIII. — Ice  Cream  Manufacturing  Report  Showing  Cost  of 

Material  Used  Per  Gallon  of  Ice  Cream  Manufactured  222 

FORM        XIX. — Ice  Cream  Shipping  Tag 225 

FORM          XX. — Report  Card  on  Prospective  Customers 238 

FORM        XXL— Sales  Ticket 239 

FORM      XXII. — Invoice 240 

FORM     XXIIL— Statement 241 

FORM      XXIV.— Patrons'  Sales  Ticket 242 

FORM       XXV. — Record  of  Consignments 243 

FORM     XXVI.— Route  Sheet 244 

FORM   XXVIa. — Daily  Balance  Sheet 270 

FORM    XXVIL— The  Order  Clerk's  Credit  Card 325 

FORM  XXVIIa.— A  Bank  Draft 330 

FORM  XXVIIL— Sight  Drafts 330 

FORM     XXIX.— A  Time  Draft 33* 

FORM      XXX.— Debit  Ledger 333 

xiii 


XIV  LIST   OF   FORMS 

PAGE 

FORM        XXXI.— Cash  Record 334 

FORM      XXXII.— Check  Register 336 

FORM    XXXIII.— Patrons'  Statement  and  Check 337 

FORM     XXXIV. — Itemized  Record  of  Purchases 338 

FORM       XXXV.— Purchase  Record 340 

FORM     XXXVI.— Sales  Record 343 

FORM   XXXVII. — Butter  Department — Inventory 344 

FORM  XXXVIII— Stock  Record 345 

FORM     XXXIX. — Ice  Cream  Inventory 346 

FORM             XL. — Manufacturing  and  Inventory  Record 347 

FORM            XLI. — Statement  of  Profit  and  Loss  for  May 348 

FORM          XLII. — Ice  Cream 349 

FORM        XLIII. — Financial  Statement 350 


LIST  OF  TABLES 

PAGE 
TABLE  I. — Transmission   of  Heat  Through  Various  Insulating 

Structures 52 

TABLE          II. — Table  of  High  Test  Chloride  Calcium  Solutions 73 

TABLE        III. — Composition  of  Fuels 132 

TASLE         IV. — Quantity  of  Fuel  Saved  by  Heating  Feed  Water ....   136 

TABLE          V. — Cost  of  Power 137 

TABLE         VI. — Densities  and  Specific  Volumes  of  Water 145 

TABLE       VII. — Table  for  Determining  Friction  Loss 160 

TABLE      VIII. — Table  Giving  Value  of  Overrun  per  Pound  of  Butter 

and  per  Pound  of  Butter  Fat 171 

TABLE         IX. — Table  Giving  Value  of  Overrun  per  Pound  of  Butter 

and  per  pound  of  Butter  Fat 172 

TABLE  X. — Table  Illustrating  How  the  Fat  Content  of  the  Result- 
ing Butter  Influences  the  Reduction  in  per  cent  of 

Overrun 184 

TABLE        XI.— Table  Illustrating  How  the  Fat  Content  of  the  Whole 

Milk  Influences  the  Reduction  in  Overrun 184 

TABLE       XII. — Table  Illustrating  How  the  Fat  Content  of  Resulting 

Cream  Influences  the  Reduction  in  Overrun 185 

TABLE     XIII.— Table  Illustrating  How  the  Fat  Content  of  Resulting 

Butter  Influences  the  Reduction  in  Overrun 187 

TABLE  XIV.— Table  Illustrating  How  the  Fat  Content  of  Cream  In- 
fluences the  Reduction  in  Overrun 187 

TABLE       XV. — Illustration  of  the  Financial  Loss  Sustained   by   a 

Creamery  Taking  Composite  Samples 192 

TABLE      XVI. — Influence  of  Temperature  on  Reading  of  Test 193 

TABLE    XVII.— Who  Gets  the  Money? 199 

TABLE  XVIII.— What  it  Costs  to  Make  and  Market  Kansas  Creamery 

Butter 200 

TABLE     XIX. — Comparison  of  the  Official  Creamery  Butter  Grades  of 

Different  Wholesale  Trade  Organizations 246 

TABLE  XX. — A  Comparison  of  Prices  at  Which  Different  Grades  of 
Butter  and  Butter  Substitutes  Were  Sold  in  New  York, 
Philadelphia,  Chicago,  St.  Paul,  and  Minneapolis 249 


XVi  LIST   OF   TABLES 

PAGE 
TABLE  XXI. — Comparison  of  Quality  (Average  Score)  and  Average 

Retail  Price  of  Branded  and  Unbranded  Butter 250 

TABLE  XXII. — Labor  Cost  For  Filling  and  Capping  Milk  Bottles 259 

TABLE  XXIII. — Table  Showing  Time  Required  for  Filling  and  Capping.  260 
TABLE  XXIV. — Percentages  of  Total  Cost  per  Quart  of  Wholesale  and 

Retail  Milk  (Eighty  Plants),  by  Size  of  Character  of 

Business 264 

TABLE  XXV. — Table  Showing  Cost  of  Handling  Milk  in  American 

Cities 265 


MANAGEMENT  OF  DAIRY  PLANTS 


MANAGEMENT  OF  DAIRY 
PLANTS 

CHAPTER  I 
PRELIMINARY  SURVEY  OF  CONDITIONS 

A  CREAMERY  may  be  owned  and  controlled  by  an  individual, 
a  closed  stock  company,  or  it  may  be  controlled  by  the  people 
of  the  entire  community;  but  regardless  of  its  prospective  form 
of  organization,  certain  factors  which  will  largely  determine  the 
success  or  failure  of  the  enterprise  should  be  considered  in  its 
undertaking.  These  are: 

1.  Nature  of  business. 

2.  Raw  material  available. 

3.  Competition. 

4.  Amount  of  money  required. 

5.  Banking  facilities. 

6.  Amount  of  rural  business  handled  by  the  town. 

7.  Attitude  of  the  community  toward  the  undertaking. 

8.  Railroad  facilities. 

9.  Suitability  of  site  and  building. 
10.  Competence  in  the  manager. 

Nature  of  Business.  —  Formerly  the  creamery  business  was 
confined  strictly  to  butter  making,  but  now  several  side  lines 
are  often  included,  such  as  ice  cream  making  and  cheese  making. 
A  creamery  receiving  milk,  either  exclusively  or  in  part,  may 
find  it  advantageous  to  manufacture  cheese  from  all  or  from  a 
portion  of  it.  Some  creameries  handle  eggs  at  a  profit.  It  is 
even  claimed  that  a  laundry  may  be  operated  profitably  in  con- 
nection with  a  creamery.  It  may  be  operated  at  a  profit;  but, 
for  sanitary  reasons,  a  laundry  seems  hardly  proper  as  a  side 

i 


2  MANAGEMENT   OF   DAIRY   PLANTS 

line  as  a  coordinate  feature  of  the  creamery.  If  operated  by 
common  power,  the  laundry  should  be  separated  from  the 
creamery  by  a  solid  wall  and  the  workers  in  one  place  should 
take  no  part  in  the  operations  of  the  other  place. 

The  market  facilities  will  naturally  play  a  big  part  in  deter- 
mining the  nature  of  the  business.  If  a  creamery  is  located  in 
a  thriving  town  or  in  a  city,  ice  cream  making  would  naturally 
fit  in  with  butter  making.  Special  demands  may  be  created  for 
soft  cheese.  A  retail  business  may  be  started  to  advantage. 
In  a  number  of  cities,  creameries  are  selling,  at  retail,  all  the 
products  they  manufacture. 

Although  some  or  perhaps  all  of  such  side  lines  should  be 
taken  up  gradually  only  after  the  business  has  been  established, 
yet  there  should  be  a  fair  survey  of  such  opportunities  at  the 
outset,  as  these  will  often  largely  determine  the  advisability  of 
starting  a  creamery. 

Raw  Material  Available.  —  Considering  Iowa  conditions,  a 
creamery  located  in  the  country  or  in  a  small  town  and  not  de- 
pending on  local  markets  for  the  sale  of  its  products,  nor  placing 
any  dependence  on  side  lines,  should  receive  cream  or  milk  from 
not  less  than  600  cows.1  If  working  with  less,  the  operating 
expenses  are  too  great  and  such  a  creamery  is  unable  to  com- 
pete with  a  strong  rival.  Farrington  and  Benkendorf  2  estimate 
for  Wisconsin  that  there  should  be  at  least  400  cows  for  a  cream- 
ery and  200  cows  for  a  cheese  factory,  with  a  good  prospect  of 
increasing  this  number  in  the  near  future. 

As  an  illustration,  consider  two  creameries,  one  receiving  the 
raw  material  from  400  cows,  the  other  receiving  the  raw  mate- 
rial from  800  cows.  Assume  that  these  creameries  are  handling 
only  gathered  cream,  that  the  entire  amount  of  butter  fat  pro- 
duced by  the  cows  is  sold  to  the  creamery,  and  that  each  cow 
produces  140  pounds  of  butter  fat  annually.  Also  take  for 
granted  that  the  price  paid  by  each  creamery  for  butter  fat 
delivered  at  its  plant  is  not  less  than  the  New  York  quotation 
for  extras,  and  that  the  butter  is  sold  on  commission  at  one 
cent  per  pound  in  excess  of  the  price  paid  for  butter  fat.  The 

1  Bui.  139,  la.  Agr,  Expt,  Sta.,  1913.      -  Bui.  244,  Wis.  Agr.  Expt,  Sta.,  1915. 


PRELIMINARY   SURVEY   OF   CONDITIONS  3 

average  yearly  selling  price  of  the  butter  is  estimated  at  27 
cents  per  pound.    The  overrun  is  figured  at  20  per  cent. 

DAILY  STATEMENT  OF  CREAMERY  No.  i 1 
400  cows  produce  yearly  56,000  Ibs.  butter  fat. 
400  cows  produce  daily  155.5  Iks.  butter  fat. 
155.5  Ibs.  butter  fat  produce  186.6  Ibs.  butter. 

Disbursements 

155.5  Iks.  butter  fat  at  26  cents $40.43 

Butter  maker's  salary  at  $100  per  month 3.33 

Tubs,  salt,  color,  etc i .  20 

100  Ibs.  skim  milk  for  starter .50 

Coal  and  ice i.oo 

Drayage .25 

Miscellaneous  expenses 50 

8  per  cent  interest  on  a  $4,000  investment 89 

Annual  depreciation  of  10  per  cent i.n 

Freight  on  186  Ibs.  butter  at  i  cent  per  Ib 1.86 

Commission  of  5  per  cent  on  186.6  Ibs.  butter  at  27  cents. .       '2.52 


$53-59 
Credits 

186.6  Ibs.  butter  at  27  cents $50.38 

500  Ibs.  buttermilk  at  10  cents  per  cwt .50 

50.88 
Daily  Loss.  .  . $  2.71 

DAILY  STATEMENT  OF  CREAMERY  No.  2 

« 
800  cows  produce  yearly  112,000  Ibs.  butter  fat. 

800  cows  produce  daily  311.1  Ibs.  butter  fat. 
311.1  Ibs.  butter  fat  produce  373.3  Ibs.  butter. 

Disbursements 

311.1  Ibs.  butter  fat  at  26  cents $80.88 

Butter  maker's  salary  at  $125 4.16 

Tubs,  salt,  color,  etc 2.40 

200  Ibs.  skim  milk  for  starter i  .00 

Coal  and  ice i .  20 

Drayage 25 

1  Estimates  made  under  pre-war  conditions. 


4  MANAGEMENT   OF  DAIRY  PLANTS 

Miscellaneous  expenses $      .50 

8  per  cent  interest  on  a  $4,000  investment 89 

Annual  depreciation  of  10  per  cent i.n 

Freight  on  373.3  Ibs.  butter  at  i  cent  per  Ib 3.73 

Commission  of  5  per  cent  on  373.3  Ibs.  butter  at  27  cents. . .       5.04 


$101.16 

Credits 

373.3  Ibs.  butter  at  27  cents $100.79 

1,000  Ibs.  buttermilk  at  10  cents  per  cwt i.oo  $101.79 


Total  Profit 0.63 

From  the  above  it  is  evident  that  a  creamery  receiving  the 
cream  from  only  400  cows  will  not  be  able  to  pay  for  butter  fat 
within  one  cent  of  the  price  received  for  its  butter.  When 
meeting  competition  from  a  larger  plant,  its  strength  will  be 
reduced.  It  also  appears  as  if  Creamery  No.  2  should  be  able 
to  pay  for  butter  fat  within  a  fraction  of  a  cent  of  the  price  it 
receives  for  butter. 

In  using  the  above  tables,  however,  it  should  be  considered 
that  a  certain  amount  of  milk  and  cream  will  be  used  on  the 
farm.  In  reality,  therefore,  if  the  stockholders  sign  up  for  Boo 
cows,  we  should  not  depend  on  receiving  the  cream  from  more 
than  600  cows. 

Competition.  —  Competition  should  be  considered  in  the 
purchase  of  raw  material  as  well  as  in  the  sale  of  finished  product. 
In  the  matter  of  purchase,  study  the  character  of  the  competi- 
tion, the  methods  adopted  by  competitors,  the  nature  of  their 
business,  their  costs  for  collecting  raw  material  and  for  produc- 
ing finished  output,  and  their  facilities  for  marketing.  If  the 
competitor  is  a  man  of  clean  habits  and  of  sound  business  prin- 
ciples, then  he  will  have  the  best  people  of  the  community  work- 
ing with  him.  If  he  is  less  honest  in  his  dealings,  his  competi- 
tion may  be  disagreeable  for  a  time  but  will  eventually  lose  out 
against  a  strong  rival.  A  proprietary  plant  cannot  prosper  in 
the  same  town  where  a  successful  cooperative  creamery  is  in 


PRELIMINARY   SURVEY   OF    CONDITIONS  5 

operation.  The  cream-receiving  station  is  usually  operated  at 
such  an  expense  and  the  cream  collected  there  is  of  such  poor 
quality  that  its  competition  seldom  wins  great  strength  against 
a  local  cooperative  plant.  But  it  should  always  be  considered 
that  a  competing  firm,  regardless  of  its  nature,  will,  while  it 
lasts,  receive  at  least  a  share  of  the  business. 

A  cooperative  creamery  may  be  organized  and  operated  in 
any  community  if  the  stockholders  represent  enough  cows.  A 
proprietary  plant  should  seldom,  if  ever,  be  established  in  a 
territory  surrounded  by  strong  competitors,  for  under  other- 
wise equal  conditions  the  younger  firm  is  at  a  disadvantage. 

It  is  rather  unusual  for  a  smaller  plant  to  establish  a  local 
market  for  its  butter;  but  if  it  does,  it  should  know  about  its 
competitors  who  sell  goods  on  the  same  market,  their  selling 
prices,  quality  of  goods,  cost  of  delivery,  credit  systems,  and 
special  concessions  offered  to  their  dealers. 

Amount  of  Money  Required.  —  The  money  needed  to  start 
and  carry  on  a  creamery  business  includes  the  amounts  neces- 
sary for  building,  equipment,  and  working  capital. 

The  building  may  be  rented.  This  is  the  mode  frequently 
adopted  when  starting  in  cities,  especially  by  people  who  have 
only  limited  means,  and  while  the  business  is  yet  in  its  experi- 
mental stage.  A  storeroom  is  often  fitted  up  at  small  cost  and 
the  principal  investment  consists  of  such  machinery  as  may  be 
readily  converted  into  cash  in  case  of  failure.  A  new  creamery 
building  large  enough  to  make  1,000  pounds  of  butter  daily 
when  only  cream  is  received  may  be  built  and  equipped  for 
from  $4,000  to  $5,000,  while  a  creamery  with  a  capacity  of  2,000 
pounds  of  butter  daily,  including  a  six-ton  compressor,  can  be 
built  and  equipped  for  from  $8,000  to  $  10,000. 1 

In  addition  to  the  building  and  equipment,  a  working  capital 
is  required.  By  working  capital  is  understood  the  margin  of 
quick  assets  over  current  liabilities.  Quick  assets  are  those 
which  can  readily  be  turned  into  cash,  such  as  good  accounts, 
good  receivable  bills,  marketable  notes,  and  securities.  Further- 
more, in  the  creamery  business  we  can  include  under  this  head 

1  Estimates  made  under  pre-war  conditions. 


6  MANAGEMENT  OF  DAIRY  PLANTS 

inventories  of  raw  material  as  well  as  of  finished  product;  also, 
such  supplies  as  tubs,  salt,  butter  color,  etc.  However,  butter 
wrappers,  cartons,  or  other  articles  marked  with  a  particular 
trade-mark  and  which  could,  therefore,  not  be  sold  readily  to 
other  factories  should  not  be  considered  under  the  head  of 
quick  assets. 

The  amount  of  money  required  for  working  capital  depends 
mainly  on  the  amount  of  business,  method  of  paying  for  cream, 
time  of  credit  on  supplies,  amount  of  supplies  carried  on  hand, 
terms  of  credit  to  customers,  and  promptness  in  collecting  out- 
standing accounts,  and,  finally,  on  the  amount  of  stock  kept  on 
hand  either  in  the  form  of  finished  products  or  as  products  in 
process  of  manufacture. 

Where  the  raw  material  is  bought  on  time  and  the  finished 
product  is  sold  for  cash  or  on  a  commission  basis,  only  a  small 
working  capital  is  required.  Some  cooperative  creameries  con- 
duct their  business  on  this  basis,  paying  monthly  or  semimonthly 
for  the  raw  material  and  selling  their  butter  on  consignment. 
In  such  cases  the  company  often  makes  out  a  sight  draft,  with 
bill  of  lading,  for  two  thirds  the  value  of  the  butter  shipped. 
This  draft  is  then  sent  through  the  bank,  and  the  company's 
account  there  is  generally  credited  with  the  amount  at  the  time 
of  deposit.  If,  however,  a  system  is  adopted  by  which  the  raw 
material  is  bought  on  cash  basis  and  the  finished  product  sold 
on  two  weeks'  time,  then  the  company  will  need  sufficient  cap- 
ital to  pay  in  advance  for  the  month's  supply  of  cream  and  sup- 
plies needed.  This  is  because  the  butter  fat  remains  unsold  in 
the  creamery  for  several  days  in  the  form  of  cream  or  butter. 
Moreover  some  of  the  outstanding  credit  accounts  will  not  be 
collected  even  within  three  or  four  weeks  after  sale  of  butter. 

Banking  Facilities.  —  Due  consideration  should  be  given 
both  to  the  financial  responsibility  and  to  the  authorized  capital 
stock  of.  the  bank  from  which  the  creamery  enterprise  must 
make  loans.  National  banks  by  law  are  required  to  limit  their 
loans  to  one  concern  to  20  per  cent  of  the  bank's  authorized 
capital  and  surplus.  A  creamery  transacting  a  big  business 
and  buying  its  raw  material  for  cash  may  often  during  the 


PRELIMINARY    SURVEY   OF    CONDITIONS  7 

summer  months  need  to  borrow  more  money  than  the  smaller 
banks  are  able  to  furnish. 

Amount  of  Rural  Business  Transacted  in  the  Town.  —  To 
a  local  proprietary  creamery  it  is  of  importance  that  the  farmers 
from  the  surrounding  territory  do  their  trading  in  the  town  in 
which  the  creamery  is  located.  The  greater  the  territory  the 
town  draws  trade  from,  the  better  patronage  the  creamery  will 
receive,  as  farmers  usually  sell  their  cream  where  they  do  their 
buying.  It  has  also  the  advantage  of  enabling  the  creamery 
man  to  meet  more  of  his  patrons  and  thereby  to  come  in  closer 
touch  with  them. 

For  the  cooperative  and  the  central  creamery  this  factor  is 
of  less  importance.  In  the  former  case,  farmers  deliver  their 
cream  where  they  are  financially  interested.  In  the  latter  case, 
the  central  plant  generally  prefers  to  locate  in  some  city  where 
other  opportunities  of  greater  importance  are  afforded.  Such 
concerns  do  not  cater  particularly  to  local  producers,  but  de- 
pend on  raw  material  being  shipped  to  them  from  long  dis- 
tances. 

Attitude  of  the  Community  Toward  the  Undertaking.  - 
Unless  both  the  producers  and  the  people  of  the  town  manifest 
a  reasonable  amount  of  interest  in  the  creamery  undertaking 
it  will  be  more  or  less  of  an  experiment  as  to  outcome.  A  co- 
operative creamery  may  be  successful  without  the  support  of 
the  people  of  the  town,  but  a  proprietary  plant  should  have 
the  support  of  both  country  and  town  people. 

If  the  people  do  not  manifest  any  interest  or  if  they  show 
unwillingness  to  support  the  local  creamery,  such  indifference 
or  even  unfriendliness  may  usually  be  traced  to  one  or  more  of 
the  following  causes:  First,  the  people  have  had  unpleasant 
experiences  with  former  local  creameries;  or,  second,  they  con- 
sider the  men  at  the  head  of  the  undertaking  as  undesirable 
persons  with  whom  to  do  business;  or,  third,  the  community 
as  a  whole  is  rather  pessimistic  and  lacking  in  cooperative  spirit. 
Any  one  of  these  factors  is  well  worth  considering.  Although 
a  manager  may  win  out  eventually  in  spite  of  it  all,  yet  the 
business  will  have  proved  more  expensive  by  the  time  it  is  put 


8  MANAGEMENT   OF   DAIRY  PLANTS 

on  a  profitable  working  basis  than  in  the  case  of  the  creamery 
which  receives  the  support  of  its  local  people  in  starting. 

A  community  of  townspeople  and  farmers  may  often  indi- 
cate its  good  will  toward  such  a  project  by  offering  a  bonus  to 
the  promoter.  This  usually  consists  of  a  building  site  or  even 
offer  to  pay  part  of  the  building  costs.  Such  an  offer  is  of  much 
value  as  an  evidence  of  local  friendliness;  but  as  the  bonus  is, 
of  course,  always  in  lieu  of  certain  specified  conditions,  to  ac- 
cept it  may  hamper  future  success  more  than  the  bonus  will 
compensate.  The  creamery  company  as  a  rule  will  do  better  to 
buy  its  own  site  and  erect  its  own  building,  thereby  keeping 
greater  independence  and  increasing  its  prestige  in  the  com- 
munity. 

Railroad  Facilities.  —  A  central  plant  should  be  located  in 
a  city  with  more  than  one  railroad.  The  more  railroads  lead- 
ing to  the  city,  the  larger  the  region  to  draw  from  and  the  more 
thoroughly  the  immediately  surrounding  territory  is  made  avail- 
able to  the  creamery.  A  large  plant  also  markets  its  own  prod- 
ucts, and  it  is  therefore  an  advantage  to  be  directly  connected 
with  a  larger  number  of  towns  and  cities.  This  factor  should 
not  be  disregarded  by  the  smaller  plants,  for  many  of  them 
might  advantageously  dispose  of  their  products  to  near-by 
dealers. 

Suitability  of  Site  and  Building.  —  In  determining  the  lo- 
cation and  housing  of  a  creamery  give  thorough  consideration 
to  sanitation,  convenience,  and  business  advantages. 

i.  Location  with  Reference  to  Sanitation.  —  The  surroundings 
of  a  creamery  should  be  sanitary.  Good  facilities  for  drainage 
are  essential.  A  creamery  should  never  be  located  close  to 
barns  or  places  where  offensive  odors  are  prevalent,  or  to  places 
which  are  natural  breeding  grounds  for  flies.  It  is  advisable  to 
provide  room  for  a  septic  tank  large  enough  to  handle  the  sew- 
age from  the  creamery.  A  sufficient  supply  of  good  water  should 
be  available. 

If  a  building  formerly  utilized  for  other  purposes  is  secured, 
it  should  be  so  located  and  constructed  that  it  can  readily  be 
put  into  a  suitable  and  sanitary  condition  without  too  great 


PRELIMINARY   SURVEY  OF   CONDITIONS  Q 

expense.  The  floors  will  usually  have  to  be  replaced  with  ce- 
ment floors;  the  walls  should  be  smooth,  preferably  cemented 
with  smooth,  hard,  cement  plaster,  or  at  any  rate  they  should 
be  thoroughly  renovated  and  painted  or  whitewashed.  There 
should  be  plenty  of  windows,  and  the  building  should  permit 
of  easy  ventilation. 

2.  Location  with  Reference  to  Convenience.  —  If  the  creamery 
is  in  a  city,  it  should  be  so  located  that  at  least  one  side  and 
one  end  of  the  building  face  a  street  or  an  alley.    If  located  in 
the  center  of  a  block  it  will  be  inconvenient  for  shipping  and 
the  amount  of  sunlight  available  will  be  insufficient.    A  cream- 
ery should  not  be  located  in  the  principal  retail  portion  of  the 
city,  as  those  streets  are  crowded  with  people  and  the  sidewalks 
cannot  be  used  for  shipping  so  readily  as  in  districts  less  crowded. 
In  smaller  towns  this  factor  will  not  deserve  so  much  consid- 
eration. 

A  location  adjoining  a  railroad  track  is  of  advantage  to  a 
creamery  doing  a  large  business,  but  for  the  smaller  plant  in  a 
small  town  the  railroad  track  is  of  less  value.  It  may  even  be  a 
disadvantage,  inasmuch  as  patrons  delivering  their  own  milk 
or  cream  will  consider  the  trains  a  source  of  danger.  Where 
farmers  deliver  their  products  to  the  creamery,  the  location  is 
most  convenient  if  near  the  center  of  town.  But  if,  for  other 
reasons,  the  creamery  must  be  located  inconveniently  for  these 
deliveries,  patronage  will  often  be  secured  by  establishing  cream- 
receiving  stations  near  the  trading  centers.1 

3.  Location  with  Reference  to  Business  Advantage.  —  Cream- 
receiving  stations  are  located  at  business  centers,  not  merely 
for  the  sake  of  convenience,  but  also  for  advertising  advantages 
which  are  perhaps  of  equal  importance.    The  creamery  itself, 
if  located  in  the  main  portion  of  a  town,  is  thus  better  adver- 
tised.   In  such  a  building  the  front  windows  should  be  large 
enough  for  the  passer-by  to  obtain  a  fair  view  of  the  entire  plant. 
In  larger  cities,  small  creameries  are  at  times  located  in  the 
retail  districts,  but  they  should  be  so  placed  that  shipping  will 

1  This  is  to  be  recommended  only  for  such  places  where  other  creameries  collect 
through  stations. 


10  MANAGEMENT   OF   DAIRY  PLANTS 

be  taken  care  of  from  the  back  part  of  the  creamery  through 
the  alley. 

Competence  of  the  Manager.  —  Managers  competent  to 
operate  a  large  creamery  are  scarce.  The  successful  manager 
should  have  had  general  business  experience,  and  preference 
should  be  given  to  one  who  has  also  had  practical  creamery  ex- 
perience. A  company  should  thoroughly  investigate  the  past 
record  of  the  man  under  consideration  for  this  position. 

The  manager  should  be  honest  and  broad-minded.  He  should 
be  fair  in  his  dealings  with  everybody.  The  manager  should  be 
clean  in  habits.  One  who  is  addicted  to  liquor  cannot  be  trusted 
at  all  times  nor  can  he  render  his  employers  the  best  service. 

The  creamery  manager  should  have  a  discerning  mind.  He 
must  be  able  to  judge  the  men  with  whom  he  has  business  deal- 
ings and  also  the  men  he  employs.  He  should  recognize  the 
limitations  as  well  as  the  possibilities  of  his  employees. 

He  should  be  an  organizer.  He  must  be  able  not  only  to  es- 
tablish a  superior  working  system  in  factory,  field,  and  office, 
but  along  with  this  he  must  also  organize  a  working  force  which 
can  carry  out  his  ideas  without  friction,  each  member  becoming 
a  useful  link  in  the  entire  chain  of  the  organization.  He  should 
be  a  good  executive.  As  such  he  must  be  a  man  of  punctuality 
and  perseverance,  able  to  gain  the  confidence  of  his  employees, 
and  at  the  same  time  obtain  efficient  and  economic  service  from 
them. 

He  should  have  had  at  least  a  fair  technical  training  in  the 
manufacture  of  those  products  which  his  factory  is  to  handle. 

He  shoujd  be  a  money-maker.  The  success  of  a  business 
enterprise  is  largely  measured  by  its  financial  success.  A  man 
that  can  be  expected  to  make  money  for  the  company  is  sup- 
posed to  be  able  to  save  for  himself.  Nevertheless,  some  men 
do  make  money  for  their  employers  while  spending  their  own 
earnings  as  soon  as  received.  The  ability  of  a  man  to  save  is, 
however,  a  good  guide  when  engaging  a  creamery  manager. 


CHAPTER  II 
FORM  OF  ORGANIZATION 

THE  simplest  and  oldest  form  of  business  ownership  is  that 
by  the  individual.  As  long  as  one  person  owns  and  operates  a 
business,  its  organization  is  very  simple.  All  business  transac- 
tions with  this  individually  owned  concern  will  be  directly  with 
the  owner  or  his  agent.  Should  this  person,  however,  take  one 
or  more  partners,  then  an  organization  known  as  a  copartner- 
ship is  formed. 

COPARTNERSHIP 

A  partnership  is  an  association  founded  upon  a  contract  be- 
tween two  or  more  competent  persons  for  joining  their  money, 
goods,  labor,  and  skill,  or  any  or  all  of  these,  for  the  purpose  of 
carrying  on  a  legal  trade  or  business,  with  the  understanding 
that_there  shall  be  a  communion  of  profit  among  such  partners. 

Partnerships  are  of  two  kinds  —  general  and  limited.  A  gen- 
eral partnership  is  the  most  common  form  and  is  an  association 
of  two  or  more  parties  who  agree  to  enter  into  a  specified  busi- 
ness without  fixing  limitations.  A  limited  partnership  is  an 
association  of  parties  for  some  of  whom  liability  is  limited. 
This  latter  form  of  partnership  is  allowed  in  some  states,  but  is 
rarely  organized,  and  is  now  largely  supplanted  by  the  corpora- 
tion. A  limited  partnership  is  usually  required  to  file  in  some 
public  office  a  certificate  showing  its  membership,  the  purpose 
for  which  organized,  its  total  capital,  its  assets,  and  the  number 
of  shares  held  by  special  partners. 

How  a  Partnership  is  Formed.  —  A  partnership  may  be 
formed  by  a  written  agreement.  Such  an  agreement  should 
specify  the  names  and  duties  of  each  partner,  the  purpose  for 
which  the  partnership  is  created,  the  amount  of  money  invested 
by  each,  how  the  partners  will  share  in  profits  and  losses,  form 

ii 


12  MANAGEMENT  OF   DAIRY  PLANTS 

of  bookkeeping  records,  duration  of  the  company,  and  other 
special  provisions. 

A  verbal  agreement  is  sufficient  for  creating  a  partnership, 
but  in  the  absence  of  a  written  agreement  the  law  assumes  that 
partners  share  profits  and  losses  equally. 

Who  May  Be  Partners.  —  All  legally  competent  persons 
may  enter  into  a  partnership.  Insanity,  idiocy,  or  habitual 
drunkenness  disqualifies  persons  from  becoming  partners. 

A  minor  may  enter  into  a  partnership,  but  contracts  by  him 
are  voidable  and  he  cannot  be  held  for  partnership  liability. 
The  minor,  when  he  comes  of  age,  or  before,  has  the  further 
privilege  of  renouncing  his  connection  with  the  company  and 
of  disaffirming  past  transactions  if  he  chooses.  If,  however,  he 
remains  connected  with  the  company  a  reasonable  length  of 
time  after  coming  of  age,  the  law  assumes  that  he  is  a  legal 
partner. 

Classes  of  Partners.  —  According  to  their  responsibilities, 
partners  may  be  designated  as: 

1.  Ostensible  Partner,  the  real  partner;  that  is,  the  one  known 
to  the  world  as  a  partner. 

2.  Dormant  Partner,  the  silent  partner;  that  is,  not  known 
to  the  world  as  a  partner  but  partaking  of  profits.     He  can 
sever  his  connection  with  the  company  without  giving  public 
notice  of  the  same  and  is  not  liable  for  debts  contracted  after 
his  retirement. 

3.  Nominal  Partner,  appearing  to  the  world  as  partner  with- 
out having  any  interest  in  the  firm's  business.    He  is  liable  to 
a  third  party  to  the  same  degree  as  the  ostensible  partner. 

4.  Special  Partner,  one  who  supplies  a  certain  amount  of 
capital.     If  complying  with  the  statutory  requirements,  he  is 
liable  only  in  proportion  to  his  interest  in  the  firm. 

Liabilities  of  the  Firm.  —  A  partnership  has  the  privilege 
of  doing  business  in  the  firm  name  and  may  sue  or  be  sued 
like  an  individual.  Debts  contracted  by  any  member  of  the 
firm  for  purchases  made  on  the  firm  account  shall  be  paid  by 
the  partnership.  In  case  of  the  partnership  being  dissolved, 
the  partners,  in  accordance  with  agreement,  will  divide  the 


FORM   OF   ORGANIZATION  13 

property  which  remains  after  all  firm  indebtedness  has  been 
paid. 

Liabilities  of  Individual  Partners.  —  The  liabilities  of  part- 
ners to  each  other  are  regulated  by  written  agreement;  in  its 
absence,  the  law  assumes  that  partners  share  alike  in  profits 
and  losses.  If  a  partner  withdraws  before  his  partnership  con- 
tract expires,  he  is  liable  to  the  remaining  member  or  members 
of  the  firm  for  damages  due  to  his  withdrawal. 

The  partners  are  individually  responsible  to  a  third  party 
for  indebtedness  contracted  by  the  copartnership. 

But  creditors  of  each  partner  as  an  individual,  if  any,  must 
first  be  satisfied  before  that  partner's  personal  property  can 
be  attached  for  his  partnership  liabilities. 

A  new  partner  is  not  responsible  for  debts  contracted  before 
he  was  admitted  as  a  partner. 

Dissolution  of  Partnership.  —  A  partnership  is  dissolved  by 

1.  Expiration  of  predetermined  time. 

2.  Mutual  agreement. 

3.  Death  of  a  partner. 

4.  Change  of  membership. 

5.  Bankruptcy  of  a  member  or  of  the  partnership  itself. 

6.  Court  action,  as  in  case  of  dishonesty,  habitual  drunken- 
ness, etc. 

No  partner  can  sell  out  his  interest  in  a  copartnership  and 
in  that  way  avoid  liability  for  debts  contracted. 

When  a  copartnership  is  dissolved,  a  notice  thereof  should 
be  sent  in  writing  to  all  firms  or  individuals  with  whom  the 
company  is  dealing  or  with  whom  it  had  former  dealings. 
Such  announcements  should  also  be  made  through  the  news- 
papers. 

If  a  partnership  is  dissolved  by  the  death  of  one  member, 
the  surviving  members  settle  the  partnership  accounts,  but  they 
are  not  authorized  to  carry  on  the  business  for  other  pur- 
poses. When  the  affairs  of  the  partnership  have  been  settled 
and  when  the  amount  belonging  to  the  deceased  has  been  paid 
to  his  rightful  heirs,  the  surviving  partners  may  then  resume 
business. 


14  MANAGEMENT   OF   DAIRY  PLANTS 


CORPORATION 

A  corporation  has  been  denned  as  an  association  of  individuals 
forming  a  body  which  the  law  regards  as  an  individual.  The 
members  of  such  a  body  may  change  successively  without  affect- 
ing its  status  as  a  legal  unit. 

We  may  distinguish  between  business  corporations  organized 
for  pecuniary  profits  and  corporations  established  for  other  than 
r  pecuniary  purposes,  such  as  churches,  fraternal  organizations, 
etc.  The  business  corporation  is  gradually  supplanting  the 
more  risky  form  of  copartnership.  This  body  organized  for 
pecuniary  profit  is  the  one  most  commonly  known  by  the  name 
of  " Corporation"  or  " Business  Corporation,"  being  an  organ- 
ization of  persons  for  the  purpose  of  conducting  some  com- 
mercial enterprise. 

Advantages  of  the  Corporation.  —  Parties  investing  money 
in  business  find  that  the  corporation  has  several  advantages 
over  the  older  form  of  organization.  Such  advantages  are: 
First,  the  permanency  of  the  organization  regardless  of  death, 
insolvency,  or  change  of  its  members;  second,  the  limited  lia- 
bilities; third,  the  ease  with  which  any  person's  interest  in  the 
corporation  may  be  disposed  of  or  transferred  to  other  parties. 

Creation  of  a  Corporation.  —  A  copartnership  is  created  by 
contract  between  twro  or  more  competent  persons  with  the 
purpose  of  carrying  on  some  legal  business.  A  corporation  is 
not  created  merely  by  agreement  of  the  members,  but  must 
receive  permission  from  certain  government  officials  to  act  as 
a  corporate  being.  Usually  the  secretary  of  state  grants  the 
applicant  a  charter  permitting  the  members  to  do  business 
under  a  corporate  name  and  particularizing  the  rights  and  priv- 
ileges granted  to  such  a  body.  The  number  of  members  re- 
quired for  creating  a  corporation  varies  in  the  different  states, 
the  minimum  number  in  most  states  being  from  three  to  five. 

Before  commencing  any  business  except  their  own  organiza- 
tion, the  members  must  adopt  articles  of  incorporation  which 
must  be  signed  and  acknowledged  by  the  incorporators.  For 
a  corporation  consisting  of  a  number  of  members  it  is  not  neces- 


FORM   OF   ORGANIZATION  15 

sary  that  all  act  as  incorporators,  the  number  required  being 
designated  by  law.  The  articles,  when  properly  signed,  are 
submitted  to  the  secretary  of  state  for  his  acceptance. 

It  is  advisable  to  consult  an  attorney  when  formulating  the 
articles  of  incorporation,  as  the  required  form  is  controlled  by 
statute.  The  following  may  serve  as  an  illustration  of  points 
which  are  usually  considered  in  such  articles. 

1.  The  name  of  the  corporation  and  its  principal  place  of 
business. 

2.  The  general  nature  of  the  business  to  be  transacted. 

3.  The  amount  of  capital  stock  authorized,  the  number  of 
shares  into  which  it  is  to  be  divided,  and  the  time  and  condi- 
tions on  which  it  is  to  be  paid. 

4.  The  time  of  commencement  and  termination  for  the  cor- 
poration. 

5.  The  names  of  the  officers  or  persons  by  whom  its  affairs 
are  to  be  conducted  and  the  time  and  manner  in  which  they 
will  be  elected. 

6.  The  highest  amount  of  indebtedness  to  which  it  is  at  any 
time  to  subject  itself. 

7.  Whether  private  property  is  to  be  exempt  from  corporate 
debts. 

Powers  of  the  Corporation.  —  A  corporation  is  considered 
by  law  as  being  a  legal  or  artificial  person.  It  cannot  carry 
on  business  except  to  the  extent  permitted  by  its  articles  of 
incorporation.  If  the  organization  decides  to  engage  in  busi- 
ness not  permitted  by  its  charter,  an  amendment  to  its  articles 
of  incorporation  must  first  be  made.  The  ordinary  powers  of 
a  corporation  are  as  follows: 

i.  Perpetual  Succession.  —  By  this  it  is  not  understood  that 
a  corporation  can  continue  forever,  for  in  most  states  the  dura- 
tion of  the  corporation  is  determined  by  the  articles  of  incor- 
poration. But  if  the  organization  is  operated  in  compliance 
with  law,  the  corporation  may  be  renewed  successively  and 
thus  continue  indefinitely. 

The  change  of  membership  in  a  corporation  does  not  affect 
the  life  thereof.  The  holding  of  stock  in  a  corporation  is  evi- 


l6  MANAGEMENT  OF  DAIRY  PLANTS 

denced  by  a  certificate  of  stock  which  is  transferable.  A  cor- 
poration may,  therefore,  consist  of  members  who  were  not  its 
original  stockholders,  yet  the  corporation  is  the  same  and  pos- 
sesses the  same  rights  and  privileges  as  under  its  original  in- 
corporators. 

2.  Electing  Officers  and  Filling   Vacancies.  —  The  directors 
constitute  the  managing  officers  of  the  corporation.    They  are 
elected  by  the  stockholders  from  their  own  membership.    The 
directors  again  usually  elect  from  the  stockholders,  or  more 
often  from  their  own  members,  a  president,  a  vice  president, 
treasurer,  and  a  secretary.    The  president,  vice  president,  and 
treasurer,  if  elected  from  stockholders  not  already*  directors, 
become  members  of  the  directing  board  upon  their  election  to 
office.    A  majority  of  the  directors  usually  constitutes  a  quorum 
for  the  transactions  of  business.    The  board  is  limited  in  power 
by  the  articles  of  incorporation  and  by  the  by-laws  of  the 
organization.    The  individual  members  of  the  board  of  directors 
cannot  transact  business  for  the  corporation;  they  must  act  as 
a  body.    The  board,  however,    has  power  to  appoint  some 
agent  whom  it  can  authorize  to  transact  the  business  of  the 
corporation. 

In  case  of  vacancy  in  an  office  due  to  death,  withdrawal, 
or  any  other  cause,  the  board  of  directors  is  vested  with  power 
to  elect  a  successor  who  will  hold  office  until  the  first  regular 
meeting  for  election  of  officers. 

3.  Right  to  Sue  and  be  Sued.  —  The  corporation  may  sue  and 
be  sued  as  an  individual,  but  its  individual  members  cannot  sue 
or  be  sued  on  the  corporation's  account. 

4.  Right  to  Purchase  and  Hold  Property  and  Real  Estate. 

5.  Right  to  Use  a  Common  Seal. 

6.  Right  to  Make  By-Laws.  —  The  by-laws  are  the  rules  and 
regulations  by  which  a  corporation  governs  itself.    They  should 
be  passed  by  the  stockholders  of  the  corporation  and  must  be 
consistent  with  the  articles  of  incorporation  and  with  the  gen- 
eral law. 

The  by-laws  contain  special  provisions  in  reference  to  stock 
and  stockholders.  They  define  the  duties  of  directors  and  offi- 


FORM  OF   ORGANIZATION  17 

cers,  contain  the  rules  governing  finances  and  dividends,  and 
regulations  as  to  meetings,  amendments,  and  special  provisions. 

Rights  and  Liabilities  of  Individual  Stockholders.  —  The 
powers  of  individual  stockholders  are  vested  in  the  board  of 
directors,  but  each  individual  has  the  right  to  attend  stock- 
holders' meetings  and  to  cast  one  vote  for  each  share  of  stock 
he  holds.  He  can  participate  in  dividends  in  proportion  to  his 
holdings  in  the  corporation.  In  case  of  dissolution  of  the  cor- 
poration he  has  a  right  to  share,  proportionately  to  his  holdings, 
in  whatever  amount  is  left  after  the  liabilities  of  the  company 
have  been  paid. 

The  stockholder  of  a  creamery  corporation,  in  case  of  in- 
solvency, is  liable  to  the  full  amount  for  which  he  has  subscribed 
and  in  some  states  assessments  may  be  made  against  the  stock. 

Capital  Stock.  —  The  capital  stock  of  a  corporation  is  the 
aggregate  amount  of  stock  which  the  company  is  allowed  by 
its  charter  to  issue.  This  capital  stock  is  divided  into  shares. 
The  size  of  these  shares  is  left  to  the  discretion  of  stockholders, 
but  is  usually  one  hundred  dollars  each.  The  definition  of  kinds 
of  stock  is  frequently  controlled  by  statute  but  may  usually 
be  considered  as  follows: 

1.  Common  Stock.  —  This  is  the  general  stock  of  the  corpora- 
tion —  the  stock  which,  without  special  provisions,  shares  in 
profits.    If  no  special  stock  is  issued  by  the  company,  all  of  its 
stock  is  common  stock.    The  holder  of  common  stock  partici- 
pates in  profits.    He  has  the  right  to  attend  all  meetings  of 
the  company,  can  vote  on  his  stock,  and  shares  in  the  assets 
of  the  company  in  proportion  to  the  shares  of  stock  he  holds. 

2.  Preferred  Stock.  —  This  is  stock  which  has  been  sold  under 
a  guaranty  that  it  will  net  a  definite  per  cent  dividend  if  the 
same  is  earned  by  the  company.    If  less  is  earned,  the  entire 
earnings  will  then  be  divided  among  the  holders  of  preferred 
stock.    The  dividend  on  the  common  stock  is  declared  after  the 
holders  of  preferred  stock  have  all  been  satisfied.    If  the  cor- 
poration becomes  insolvent,  the  preferred  stock  is  redeemed 
after  the  debts  have  been  paid  and  before  any  of  the  common 
stock  has  been  redeemed. 


l8  MANAGEMENT   OF   DAIRY  PLANTS 

3.  Treasury  Stock.  —  Issued   stock  which  has   become   the 
property  of  the  corporation  by  purchase,  gift,  etc.,  is  known 
as  "treasury  stock."    As  such  it  is  inactive,  since  it  does  not 
share  in  profits  and  has  no  power  to  vote.    It  is  considered  as 
an  asset  of  the  company  and  may  be  sold  or  held  by  the  com- 
pany at  the  discretion  of  the  directors. 

4.  Watered  Stock.  —  This  is  stock  that  represents  more  than 
the  full  value  of  money  which  has  been  paid  into  the  treasury 
of  the  company.     Stock  is  watered  by  the  unscrupulous  cor- 
poration either  for  the  purpose  of  making  a  big  profit  on  the 
sale  of  stock  or  for  the  purpose  of  deceiving  people  as  to  the 
real  earnings  being  made.    Consider,  for  example,  an  electric- 
light  company.     It  has  invested  $100,000  in  the  enterprise. 
The  stockholders  realize  25  per  cent  on  their  investment.    In 
order  to  comply  with  certain  state  laws  as  well  as  to  conceal 
from  the  public  the  enormous  rate  of  dividend,  the  corporation 
issues  stock  up  to  $200,000  without  correspondingly  increasing 
any  tangible  values  on  which  that  additional  stock  rests.    On 
such  an  inflated  capital  this  annual  dividend  then  becomes  12^ 
per  cent  instead  of  25  per  cent. 

Certificate  of  Stock.  —  A  certificate  of  stock  is  evidence  of 
ownership.  It  is  transferable  when  properly  indorsed  by  the 
owner  and  made  payable  to  the  purchaser.  It  is  then  to  be 
transferred  on  the  books  of  the  company. 

Dissolution  of  a  Corporation.  —  A  corporation  may  be  dis- 
solved (i)  at  the  expiration  of  the  predetermined  time,  (2)  by 
the  voluntary  act  of  the  stockholders,  (3)  by  law  —  as  in  case 
of  fraud  or  dishonesty  in  the  conduct  of  business  by  the  direct- 
ing board  or  the  managing  officers,  (4)  by  insolvency. 

When  a  corporation  is  dissolved,  the  debts  of  the  company 
are  first  to  be  paid.  The  balance  of  the  assets  will  then  be 
divided  among  the  stockholders  in  proportion  to  their  holdings 
in  the  company. 

MUTUAL  COOPERATIVE  CREAMERY  ASSOCIATION 

This  form  of  creamery  organization  was  originated  in  Den- 
mark in  1882  by  Stilling  Anderson  of  Copenhagen.  The  asso- 


FORM   OF   ORGANIZATION  IQ 

elation  was  organized  in  the  small  country  town  of  Hjedding 
not  far  from  Esbjerg  in  Jutland.  Cooperative  associations  along 
other  lines  were  started  in  Denmark  as  early  as  1866  by  Mr. 
Sonne  of  Tisted,  Jutland.  Mr.  Sonne's  idea  for  such  associa- 
tions was  originally  borrowed  from  Great  Britain. 

A  mutual  cooperative  creamery  association  is  an  organization 
of  dairymen  for  the  purpose  of  jointly  converting  the  raw  ma- 
terials, milk  and  cream,  into  finished  products  such  as  butter, 
cheese,  ice  cream,  etc.,  the  business  being  conducted  on  a  purely 
mutual  and  cooperative  plan. 

Such  an  organization  may  or  may  not  be  incorporated.  If 
incorporated,  its  business,  like  that  of  any  other  corporation, 
is  governed  by  articles  of  incorporation  and  by-laws.  Its  affairs 
are  likewise  conducted  by  a  board  of  directors,  and  officers  are 
elected  either  by  vote  of  the  members  of  the  organization  or 
by  its  directors.  The  directors  usually  select  an  agent  who  is 
responsible  to  the  board  of  directors  for  his  management  of  the 
business. 

Capital  Stock  and  Dividends.  —  In  some  states  the  coop- 
erative association  is  organized  with  capital  stock,  but  no  divi- 
dends are  declared  on  such  stock.  In  other  states  the  coopera- 
tive association  is  organized  without  capital  stock,  thereby 
indicating  that  dividends  cannot  be  declared. 

The  cooperative  creamery,  like  the  church,  is  of  common 
benefit  to  a  community  and  should  be  the  common  property  of 
its  people.  The  money  required  for  establishing  such  a  cream- 
ery should  be  subscribed  by  the  producers  in  proportion  to  the 
amount  of  butter  fat  produced  by  each.  In  Denmark,  a  person 
joining  a  cooperative  creamery  association  must  guarantee  to 
furnish  the  milk  from  all  of  his  cows  for  a  definite  period  ex- 
tending over  several  years.  This  system,  however  well  adapted 
to  Denmark,  has  not  been  incorporated  in  the  by-laws  of  asso- 
ciations in  the  United  States.  It  is  more  difficult  in  this  coun- 
try to  have  the  amount  subscribed  correspond  to  the  amount 
of  butter  fat  delivered  to  the  creamery. 

One  of  the  more  satisfactory  methods  of  securing  money  for 
the  establishment  of  a  cooperative  creamery  is  through  a  loan 


2O  MANAGEMENT  OF  DAIRY  PLANTS 

secured  by  the  association.  This  loan  may  be  made  by  a  bank 
or  by  individual  members  of  the  association.  If  the  money  is 
borrowed  from  a  bank  or  a  loan  association,  such  an  institution 
will  naturally  demand  security.  This  is  given  by  the  members 
of  the  creamery  association  in  the  form  of  individual  notes  or 
joint  notes  which  are  held  by  the  bank  as  collateral.  The  in- 
terest on  this  loan  and  part  of  its  capital  are  paid  annually  from 
a  sinking  fund  which  is  created  by  reserving  one  cent  or  a  frac- 
tion of  a  cent  per  pound,  from  the  price  of  the  butter  fat  de- 
livered by  each  patron,  or  by  assessing  each  patron  a  definite 
per  cent  on  the  money  he  receives  for  butter  fat  delivered. 
The  amount  or  per  cent  to  be  paid  varies  in  proportion  to  the 
amount  of  indebtedness,  to  the  total  amount  of  butter  fat  re- 
ceived by  the  association,  and  to  the  number  of  years  required 
to  pay  the  entire  indebtedness. 

A  sinking  fund  should  always  be  created  by  the  cooperative 
creamery  association,  whether  the  plant  has  been  paid  for  or 
not.  It  is  needed  to  keep  the  plant  and  equipment  in  repair 
and  to  buy  new  equipment.  The  amount  accumulated  for  that 
purpose  should  measure  up  to  20  per  cent  of  the  cost  of  building 
and  equipment  and  should  be  kept  as  a  special  account  in  the 
bank. 

All  money  received  by  the  association  from  the  sale  of  its 
goods  belongs  to  the  patrons  of  the  creamery.  After  all  oper- 
ating expenses  have  been  paid  and  the  necessary  amount  de- 
ducted for  a  sinking  fund,  the  remaining  sum  should  be  divided 
among  the  patrons  in  proportion  to  the  amount  of  butter  fat 
delivered  by  each. 

Membership  and  Its  Rights.  —  Only  patrons  of  the  cream- 
ery may  become  members  of  a  mutual  cooperative  association. 
Each  patron  has  one  vote  on  all  matters  pertaining  to  the 
business.  The  fact  that  a  person  becomes  a  patron  of  the 
creamery  should  make  him  a  member  of  the  association  as, 
in  paying  his  share  of  the  sinking  fund,  he  is  paying  toward  the 
maintenance  of  the  plant. 

Dissolution.  —  In  case  of  the  dissolution  of  a  cooperative 
creamery  association,  each  patron  or  former  patron  has  the  right 


FORM   OF   ORGANIZATION  21 

to  share  in  whatever  amount  is  left  after  the  liabilities  of  the 
association  have  been  paid,  such  share  being  in  proportion  to  the 
amount  of  business  he  has  transacted  through  the  association. 

Advantages.  —  The  cooperative  creamery  is  usually  suc- 
cessful in  communities  where  a  sufficient  amount  of  milk  is  pro- 
duced and  where  the  people  understand  how  to  work  together 
in  harmony.  In  such  communities  the  advantages  of  the 
mutual  cooperative  creamery  association  over  one  owned  by 
an  individual  or  a  company  are,  primarily: 

1.  Increased  Value  of  Raw  Product.  —  This  is  due  to  elimina- 
tion of  dividends  on  capital  stock  and  also  to  decreased  expense 
in  securing  raw  material  through  assurance  of  its  more  definite 
supply.    Furthermore,  this  greater  profit  to  members  on  their 
raw  product  stimulates  them  to  secure  increased  production 
from  their  herds. 

2.  Better  Quality  of  Raw  Product.  —  The  patrons  of  a  coopera- 
tive creamery  realize  more  keenly  the  importance  of  better  care 
for  milk  and  cream  on  their  own  farms,  knowing  that  neglect 
along  such  lines  results  in  direct  loss  to  them.    In  a  cooperative 
organization  the  producers  pay  closer  attention  to  the  quality 
of  goods  delivered  by  their  fellow  members  and  the  one  who  de- 
livers raw  products  of  inferior  quality  is  liable  to  severe  criticism. 

JOINT-STOCK  COMPANY 

The  joint-stock  company  as  a  creamery  company  is  an  organ- 
ization of  persons  who  join  together  for  the  purpose  of  convert- 
ing raw  materials  into  finished  products  as  well  as  for  the  pur- 
pose of  marketing  the  same.  This  organization  has  a  capital 
stock  on  which  dividends  are  declared.  The  joint-stock  com- 
pany proves  to  be  most  successful  in  certain  places,  mainly 
those  localities  where  the  townpeople  have  come  to  a  full  realiza- 
tion of  the  advantages  of  home  industry  and  organization,  and 
where  they  exert  some  influence  over  the  farming  population. 
Many  such  creamery  companies  have  been  organized  entirely 
by  the  efforts  of  the  townspeople.  They  are  commonly  known 
as  cooperative  creameries  but  are  not  strictly  cooperative  in 
principle.  Some  of  them  approach  cooperative  methods  closely 


22  MANAGEMENT  OF   DAIRY  PLANTS 

while  others  are  operated  on  much  the  same  plan  as  a  business 
corporation. 

Capital  and  Dividends.  —  The  joint-stock  company  differs 
from  the  cooperative  organization  in  that  it  declares  dividends 
on  capital  stock  and  that  stock  is  frequently  held  by  people 
who  are  not  producers.  Some  creameries  operated  under  this 
form  declare  a  large  dividend  on  capital  stock,  but  such  divi- 
dend should  not  at  any  time  exceed  the  current  rate  of  interest 
on  money  loans.  Some  of  these  associations,  when  properly 
controlled  by  the  producers,  stipulate  in  their  articles  of  incor- 
poration what  per  cent  of  dividend  may  be  declared.  Some  do 
not  designate  such  returns  as  dividends  but  as  interest.  They 
are  thus  making  the  cooperative  feature  more  prominent  and 
are  also  guarding  against  the  possibility  of  any  stockholder 
obtaining  an  unfair  dividend,  as  the  maximum  rate  of  interest 
is  defined  by  law. 

Price  Paid  for  Raw  Material.  —  Some  creameries  draw  a 
distinct  line  between  patrons  who  are  stockholders  and  patrons 
owning  no  stock.  They  often  pay  a  non-stockholder  from  one 
to  two  cents  less  per  pound  for  butter  fat  delivered  to  the  cream- 
ery; at  the  same  time  they  deduct  from  his  check  a  regular 
membership  assessment  for  running  expenses  and  for  the  sink- 
ing fund  from  which  dividends  and  cost  of  repairs  are  paid. 

To  illustrate,  suppose  a  creamery  thus  organized  and  con- 
ducted received  an  average  of  400  pounds  of  butter  fat  daily 
or  144,000  pounds  annually.  If  its  capital  stock  was  $5,000 
and  one  cent  per  pound  were  deducted  for  fat  received,  the 
dividend  declared  in  that  way  would  amount  to  $1,440  an- 
nually, or  28.8  per  cent  of  the  capital  stock.  At  the  same  time 
patrons  might  be  required  to  contribute  to  the  sinking  fund 
from  which  the  regular  dividend  on  capital  stock  is  to  be  de- 
clared to  stockholders. 

Obviously,  the  price  paid  for  butter  fat  should  be  the  same 
for  all,  whether  stockholders  or  not.  When  non-stockholders 
assist  in  creating  a  sinking  fund  from  which  dividends  and  cost 
of  repairs  are  paid,  no  more  can  rightfully  be  asked  of  them; 
nor  is  it  fair  to  the  patrons  of  such  a  creamery  to  create  a  sinking 


FORM   OF   ORGANIZATION  23 

fund  much  in  excess  of  what  is  actually  needed  for  declaring  a 
fair  dividend  and  for  upkeep  of  the  plant. 

Who  May  Become  Stockholders.  —  Others  than  patrons  of 
the  creamery  may  own  stock  in  the  organization.  But  the 
patrons  should  at  all  times  own  its  major  portion.  If  the  con- 
trolling interest  is  held  by  non-producers,  the  cooperative 
features  of  the  organization  are  likely  to  be  less  marked,  and 
the  producers  are  more  likely  to  lose  enthusiasm.  A  creamery 
that  has  been  organized  as  a  joint-stock  company  may  even- 
tually be  changed  into  a  cooperative  creamery  by  gradually 
buying  up  the  stock  with  the  money  in  the  sinking  fund,  if  agree- 
able to  the  stockholders.  It  often  appeals  to  a  stockholder  to 
know  that  he  may  subscribe  to  stock  with  the  understanding 
that  a  definite  dividend,  say  8  per  cent,  will  be  paid  annually 
together  with  a  definite  per  cent  of  the  capital.  He  feels  more 
keenly  that  money  thus  subscribed  is  not  lost. 

Rights  of  Stockholders.  —  Only  stockholders  of  the  organi- 
zation can  vote  on  matters  pertaining  to  the  business.  Some 
creameries  are  so  organized  that  the  stockholder  has  one  vote 
for  each  share  of  stock,  others  come  closer  to  the  mutual  co- 
operative association  in  allowing  each  member  only  one  vote 
regardless  of  the  amount  of  stock  he  holds.  In  most  creameries 
of  this  kind  the  number  of  shares  that  can  be  held  by  one  in- 
dividual is  limited. 

This  form  of  creamery  organization,  if  conducted  as  near  as 
possible  on  the  cooperative  plan,  has  the  same  advantages  as 
the  cooperative  association;  and  in  places  where  the  townspeople 
are  more  aggressive,  than  the  farming  population,  this  form  is 
even  preferred.  This  type  of  creamery  association  should  not 
be  confused  with  some  of  the  big  corporations  that  provide  for 
a  certain  amount  of  stock  to  be  sold  to  producers  in  different 
sections  of  the  country.  The  latter  form  is  not  cooperative  in 
any  way  except  in  name.  The  organization  is  under  the  absolute 
control  of  comparatively  few  individuals  as,  even  if  more  than 
half  of  the  stock  were  sold  to  producers,  such  stockholders  are 
usually  scattered  so  widely  that  no  united  action  could  be 
carried  through  by  them, 


CHAPTER  III 
CREAMERY  CONSTRUCTION 

FLOOR  PLAN 

Size  of  Floor.  —  The  amount  of  floor  space  needed  depends 
on  the  character  and  volume  of  business  to  be  conducted  and 
the  methods  of  manufacture.  The  amount  of  room  required 
in  a  plant  handling  whole  milk  is  somewhat  greater  than  that 
required  for  a  plant  manufacturing  the  same  amount  of  butter 
from  gathered  cream.  If  cheese  or  ice  cream  is  to  be  manufac- 
tured in  connection  with  butter  making,  the  problem  becomes 
more  complex.  There  is  no  definite  rule  by  which  to  figure  the 
amount  of  space  required  for  manufacturing  a  definite  amount 
of  finished  product,  as  it  depends  so  largely  on  the  method  of 
manufacturing.  As  an  illustration:  In  the  manufacture  of  but- 
ter, one  plant  prefers  to  pasteurize  the  cream,  another  will  churn 
the  cream  raw.  The  latter  requires  less  space  than  the  former 
for  doing  the  same  amount  of  work.  Then,  again,  the  kind  of 
machinery  installed  often  makes  a  noticeable  difference,  one 
pasteurizer  occupying  perhaps  twice  as  much  floor  space  as 
another  of  the  same  capacity. 

It  is  considered  that  a  floor  space  26  feet  by  50  feet  is 
sufficient  for  a  gathered-cream  factory  manufacturing  up  to 
500  pounds  of  butter  daily,  and  a  floor  space  30  feet  by  60  feet 
for  manufacturing  from  500  pounds  to  1,500  pounds  daily.  A 
floor  space  of  40  feet  by  60  feet  should  be  sufficient  for  manu- 
facturing from  1,000  pounds  to  1,500  pounds  of  butter  and  from 
50  gallons  to  100  gallons  of  ice  cream  daily. 

Arrangement.  —  The  chief  factors  in  determining  a  success- 
ful plan  of  arrangement  are: 

i.  Local  Conditions.  —  Arrangement  of  floor  space  will  be 
influenced  by  location  with  respect  to  street,  alley,  or  railroad 

24 


o 

I 


26  MANAGEMENT   OF   DAIRY   PLANTS 

track.  Weather  conditions  might  determine  the  place  for  cream 
intake.  Retail  business  in  connection  with  the  factory  might 
change  the  whole  plan  of  arrangement.  Advertising  possibil- 
ities might  well  bring  certain  portions  of  the  factory  to  the 
front  so  that  some  of  its  manufacturing  operations  are  in  plain 
sight  of  people  passing  by.  This  point  is  well  illustrated  by 
Fig.  i,  in  which  is  shown  a  butter  and  ice  cream  factory  located 
on  the  main  street.  Large  windows  in  front  expose  the  interior 
of  the  factory  to  the  view  of  passers-by.  The  floor  plan  in 
Fig.  2  illustrates  some  influences  a  railroad  track  may  have  on 
the  arrangement  of  a  creamery.  This  building  had  to  be  so 
planned  that  coal,  ice,  and  supplies  could  be  unloaded  from  the 
cars  on  the  creamery  track  and  butter  loaded  into  cars  similarly 
placed. 

2.  Convenience  in  Operation  -  -  The  greatest  economy  of  labor 
and  power  is  obtained  by  having  the  product  move  through 
its  successive  factory  operations  on  a  straight  line.  At  one  end 
of  that  line  the  factory  receives  its  raw  material,  as  cream  or 
milk;  at  the  other  end  it  puts  out  that  raw  material  as  finished 
product  in  the  form  of  butter,  cheese,  ice  cream,  etc.  It  is  ob- 
vious that  those  parts  of  a  factory  whose  work  is  closely  related 
should  be  near  together.  It  would  be  very  inconvenient,  for 
example,  to  have  the  receiving  room  close  to  the  churn  and 
more  distant  from  the  cream  ripeners.  The  natural  and  most 
logical  arrangement  is  that  with  the  cream-receiving  room  or 
platform  first,  the  vat  next,  and  then  the  churn.  Testing  is  so 
closely  connected  with  the  receiving  of  cream  and  milk  that  it 
should  be  done  close  by  or  in  the  receiving  room.  Office  work 
is  also  closely  connected  with  the  work  in  the  receiving  and 
testing  rooms  and  should  be  near  to  both. 

Referring  again  to  the  floor  plan  in  Fig.  2:  In  order  that  ice, 
coal,  and  supplies  might  be  most  conveniently  unloaded  direct 
from  the  car,  it  was  necessary  to  locate  the  boiler  toward  the 
center  of  the  building.  This  made  it  very  inconvenient  in  re- 
moving ashes,  and  the  supply  room  was  not  conveniently  lo- 
cated. Later,  when  it  was  decided  to  install  a  refrigerating 
plant,  the  former  inconvenience  was  readily  overcome  by  remov- 


28  MANAGEMENT  OF  DAIRY  PLANTS 

ing  the  coal  room,  boiler  room,  and  receiving  room  to  the  other 
end  of  the  building.  The  refrigerator  could  then  be  located 
against  the  supply  storage  room. 

Slope  of  Floor.  —  The  floor-  in  a  creamery  should  have  a 
slope  of  about  one  inch  in  four  feet.  In  the  churn  room  this 
slope  should  gradually  increase  toward  the  drain. 

Floor  Materials.  —  Cement  floors  are  perhaps  the  most 
serviceable  as  well  as  the  most  economical  for  creameries,  but 
sawed  stone  and  tile  are  also  used  to  a  limited  extent. 

i.  Cement.  —  The  cement  floor  consists  of  a  concrete  base 
from  four  inches  to  six  inches  in  thickness,  with  a  surfacing  one 
half  inch  in  thickness.  The  base  should  be  placed  on  a  well 
settled  and  packed  soil. 

The  concrete  base  may  be  made  of  one  part  best  Portland 
cement,  two  parts  clean,  coarse,  sharp  sand,  and  three  parts 
mixed  gravel  or  finely  broken  stone  or  tile,  all  thoroughly  mixed 
and  lightly  tamped  in  place.  Before  the  concrete  has  set,  there 
should  be  applied  to  it  a  half-inch  finish  or  surfacing  consisting 
of  equal  parts  of  Portland  cement  and  sharp  sand,  and  this 
should  then  be  troweled  smooth. 

A  cement  floor  may  be  laid  in  the  second  or  third  story  of  a 
creamery  building;  but  unless  the  entire  floor  is  constructed 
from  reenforced  concrete,  such  cement  should  be  laid  on  top 
of  a  heavy  plank  floor  properly  supported  to  prevent  jarring. 
Such  an  upper-story  floor  should  be  constructed  practically  the 
same  as  the  main  floor  described  above,  except  that  between 
the  concrete  base  and  the  plank  floor  there  should  be  laid  a 
covering  of  waterproof  prepared  material  similar  to  prepared 
roofing.  The  sheets  of  this  material  should  be  properly  ce- 
mented before  the  cement  floor  is  laid.  This  waterproofing 
answers  the  double  purpose  of  preventing  the  floor  from  leaking 
and  of  preserving  it  from  cracks  due  to  uneven  contraction  and 
expansion  in  the  cement  and  wood.  If  the  different  parts  of 
the  floor  are  subjected  to  extreme  differences  in  temperature, 
then  the  surfacing  should  be  divided  off  into  squares  or  rect- 
angles about  thirty  inches  wide.  The  crevices  may  be  filled 
with  hot  asphalt. 


CREAMERY   CONSTRUCTION 


..  c>.c-J—  o-£-\~-&-1> — <J— -  ?-€-** — \^-.9-S — "^ro-f  'I*  ..<>P ^*4~- o-.C-b-.O:*    » I- ,o.-g-«4«  - 

c 


g 

4 
O 


-p    I 


30  MANAGEMENT  OF  DAIRY  PLANTS 

2.  Stone  and  Tile.  —  If  sawed  stone  or  tile  is  used  for  the 
floor,  either  one  should  be  laid  in  cement  on  a  concrete  base 
similar  to  the  base  constructed  for  cement  floors. 

3.  Asphalt.  —  This  has  been  used  for  creamery  floors  to  some 
extent  as  a  surface  coating  usually  of  about  one  and  one  half 
inches  in  thickness.    It  is  laid  on  a  concrete  base  as  in  the  case 
of  floors  previously  described.    As  asphalt  floor  has  the  advan- 
tage of  being  comparatively  soft  and  hence  less  tiring  to  work- 
men than  the  harder  floors.     Furthermore,  it  is  considered 
waterproof,  and  is  comparatively  easy  to  repair.    However,  as 
it  gradually  dissolves  under  hot  water,  it  proves  less  desirable 
for  floor  covering  in  a  creamery. 

4.  Plank.  —  The  plank  floor  was  formerly  used  more  exten- 
sively than  any  other  kind.    As  it  is  unsanitary  and  lacking 
in  durability,  it  cannot  be  considered  very  serviceable. 

FOUNDATIONS,  WALLS,  AND  BRICKWORK 

Mortar.  —  Kidder  x  recommends  for  brickwork  a  mortar 
made  from  one  part  of  Portland  cement  and  three  parts  of 
sand.  "One  barrel  of  Portland  cement  and  three  barrels  of 
sand  thoroughly  and  properly  mixed  will  make  31/3  barrels,  or 
12  cubic  feet,  of  good  strong  mortar  .  .  .  sufficient  to 
lay  .  .  .  750  bricks,  with  1/4  to  3/8-inch  joints." 

Hoeppner  maintains  that  a  mortar  made  from  cement  and 
sand  alone  should  not  be  used  for  hollow  tile,  as  such  mortar 
is  too  "short"  and  will  roll  off  the  tile  and  hence  does  not  insure 
a  full  joint. 

Cement.  —  Cement  used  for  building  construction  should 
meet  the  following  requirements  of  the  American  Society  for 
Testing  Materials: 

The  specific  gravity  of  the  cement,  thoroughly  dried  at  100° 
C.,  shall  not  be  less  than  3.10. 

It  shall  leave  by  weight  a  residue  of  not  more  than  8  per  cent 
on  a  No.  100,  and  not  more  than  25  per  cent  on  a  No.  200  sieve. 

It  shall  develop  initial  set  in  not  less  than  thirty  minutes, 

Architects'  and  Builders'  Pocketbook,  by  Kidder,  1912,  pp.  199-200. 


CREAMERY  CONSTRUCTION  31 

but  must  develop  hard  set  in  not  less  than  one  hour,  nor  more 
than  ten  hours.1 

Cement  mortar  is  injured  to  a  great  extent  if  frozen  before 
it  is  set.  Kidder  2  maintains  that  it  is  not  safe  to  allow  a  slow- 
setting  cement  mortar  to  freeze  in  less  than  four  days  after  it 
has  been  placed,  while  a  very  quick-setting  cement  mortar  may 
freeze  in  twelve  hours  without  injury  provided  the  mortar  is 
kept  frozen  until  set.  Portland  cement  mortar  is  injured  more 
when  it  alternately  freezes  and  thaws  than  when  it  remains 
frozen  before  it  has  set  hard. 

Foundation.  —  This  is  most  satisfactorily  constructed  from 
concrete.  The  thickness  of  the  foundation  at  its  top  is  equal  to 
that  of  the  wall,  but  gradually  increases  in  thickness  toward 
the  bottom  (Fig.  4).  The  depth  of  the  foundation  varies  in 
accordance  with  the  character  of  the  ground  and  the  size  of  the 
building.  A  foundation  from  4  feet  to  6  feet  deep  is  usually 
sufficient  for  a  building  one  story  to  two  stories  in  height. 

The  concrete  for  the  foundation  may  be  made  of  one  part 
Portland  cement,  three  parts  clean,  coarse,  sharp  sand,  and  five 
parts  tile  or  stone  broken  in  pieces  of  not  more  than  2  inches 
dimension.  The  cement  and  sand  are  first  to  be  thoroughly 
mixed  in  the  dry  state,  then  mixed  with  water,  and  the  broken 
tile  or  stone  added,  after  which  the  concrete  is  turned  over 
three  times  in  the  mixing  box  and  immediately  deposited  in  the 
trenches  and  tamped  lightly  until  the  water  rises  to  the  surface. 
The  concrete  walls  above  ground  should  be  finished  smooth 
and  even. 

Walls.  —  The  kind  of  material  from  which  the  walls  of  a 
creamery  may  be  constructed  depends  largely  on  the  cost  and 
efficiency  of  material  available  in  the  particular  locality.  The 
most  common  materials  used  in  the  construction  of  creamery 
walls  are  brick,  hollow  tile,  brick  and  hollow  tile,  and  cement 
blocks.  A  frame  building  is  not  to  be  recommended,  as  the 
fire  risk  is  greater  and  the  structure  is  lacking  in  sanitation, 
durability,  and  appearance.  The  walls  of  workrooms  should 
be  at  least  16  feet  from  floor  to  ceiling. 

1  Kidder,  1912,  p.  853.  2  Kidder,  p.  199. 


MANAGEMENT   OF   DAIRY   PLANTS 


•PLAT!  OT  \VHXL  roUrtDATIOttS  ^r  SPECIAL   FOOTINGS 


7P^y#iS£*;*KM3  H  E*rtH  fillif—.thoreufthJ; 

2    >]Mv:>V'-'i:V;f'ti  *  ^P^-  »«  5»ort  fiSor 


. 
•  Creexmery    jf^io    i 

FIG.  4.  —  Details  of  construction. 


CREAMERY  CONSTRUCTION  33 

1.  Brick.  —  Brick  is  perhaps  the  most  satisfactory  material 
from  which  to  construct  a  creamery  wall,  but  it  is  also  the  most 
expensive.    The  standard  size  of  brick  is  2  inches  by  4  inches  by 
8  inches.     The  brick  should  be  uniform  in  composition  and 
free  from  lime  spots.     A  hard-burned  brick  is  most  durable; 
but  for  a  building  located  in  the  city,  pressed  brick  is  more 
satisfactory  for  facing.    A  brick  should  be  tested  for  its  power 
to  absorb  moisture.    This  may  readily  be  done  by  the  following 
method :  Place  a  brick  in  the  furnace  or  in  the  oven  of  a  kitchen 
range;  leave  it  there  for  24  hours  or  until  the  weight  of  the  brick 
remains  constant;  then  submerge  in  water  for  24  hours;  after- 
ward, wipe  it  dry  with  a  cloth  and  weigh.    A  brick  absorbing 
moisture  to  exceed  8  per  cent  of  its  own  weight  should  be  re- 
jected.   Such  a  brick  will  disintegrate  during  the  winter  season 
when  the  moisture  in  it  freezes. 

A  one-story  or  two-story  creamery  building  constructed  from 
brick  should  have  a  wall  not  less  than  10  inches  thick,  allowing 
2  inches  for  air  space.  The  bricks  should  be  laid  with  well- 
filled,  full-bedded  joints  3/8  inches  wide.  The  walls  should  be 
plumb  and  straight,  using  a  line  on  both  sides  of  the  wall  through- 
out its  entire  height.  They  should  be  securely  bonded  with 
headers,  and  should  be  reenforced  above  all  openings.  All  ex- 
posed joints  in  walls  should  be  neatly  smoothed  with  the  trowel. 

2.  Hollow  Tile.  —  Hollow  tile  has  been  used  quite  extensively 
during  recent  years  in  the  construction  of  creameries.     The 
standard  sizes  of  hollow  tile  are  4  inches  by  8  inches  by  1 2  inches 
and  5  inches  by  8  inches  by  1 2  inches.    The  former  is  used  more 
frequently.     What  has  been  stated  concerning  the  quality  of 
brick  applies  also  to  tile.    It  is  tested  in  a  similar  manner,  and 
any  tile  absorbing  moisture  to  exceed  5  per  cent  of  its  own 
weight  should  be  discarded. 

Hollow  tile  may  be  laid  in  two  different  ways  —  either  on 
edge  or  down  flat.  If  on  edge  and  with  a  tile  4  inches  thick, 
the  wall  should  be  constructed  10  inches  thick  with  a  2-inch 
air  space  allowed.  The  principal  objection  to  this  wall,  unless 
cemented  on  both  sides,  is  its  unattractive  appearance.  If  the 
tiles  are  laid  flat,  a  single  layer  will  make  a  wall  8  inches  thick. 


34  MANAGEMENT  OF  DAIRY  PLANTS 

Such  a  wall  is  suitable  for  a  one-story  creamery,  and  is  prac- 
tically as  attractive  as  one  made  of  brick. 

Particular  care  should  be  taken  that  joints  are  well  filled 
with  properly  prepared  mortar.  If  not,  rain  dashed  by  heavy 
wind  will  beat  through  the  wall.  Special  attention  should  also 
be  given  to  assure  that  ends  of  blocks  are  properly  joined  with 
mortar.  Owing  to  their  construction,  this  becomes  the  most 
difficult  task  in  laying  tile. 

The  principal  advantages  of  hollow  tile  are  its  comparative 
cheapness  and  low  cost  of  laying.  Air  spaces  in  blocks  serve 
as  insulation  if  the  walls  are  absolutely  tight  in  construction. 
If  any  particular  objection  can  be  made,  it  is  primarily  that  a 
hollow- tile  wall  may  be  more  readily  damaged,  as  by  a  wagon 
backing  up  against  it.  If  a  hole  is  made,  the  hollow  tile  affords 
an  excellent  hiding  place  for  mice  and  rats.  It  is  also  more 
difficult  to  make  an  air-tight  wall  from  hollow  tile. 

3.  Combination  of  Brick  and  Hollow  Tile.  —  This  is  becoming 
the  more  popular  material  for  wall  construction.     It  usually 
consists  of  a  4-inch  brick  for  the  outside  wall,  then  a  2-inch  air 
space,  and  finally  a  4-inch  hollow  tile,  making  a  zo-inch  wall. 
The  brick  and  hollow  tile  should  be  securely  bonded  with 
headers.    This  combined  material  has  advantages  over  hollow 
tile  in  that  it  gives  the  building  an  outward  appearance  of  solid 
brick,  and  the  latter  can  be  laid  more  easily  to  form  a  tight  wall. 
It  has  the  advantage  of  a  solid  brick  wall  in  being  less  expensive 
and  at  the  same  time  just  as  durable,  since  the  inside  wall  is 
covered  with  cement  plaster.     Inside  partitions  are  usually 
built  from  hollow  tile  exclusively. 

4.  Cement  Blocks.  —  The  cement  blocks  used  for  creamery 
construction  are  either  8  inches  by  8  inches  by  24  inches  or 
else  8  inches  by  8  inches  by  16  inches  in  size.    These  blocks 
should  be  double,  with  two  or  four  wire  headers  between  halves. 
Those  used  for  outside  walls  are  usually  made  rock-faced  for 
the  sake  of  appearance;  those  for  inside  partitions  are  smooth- 
faced.   The  blocks  should  show  good  workmanship  in  construc- 
tion, be  made  of  good  material,  and  show  a  sustaining  strength, 
under  test,  of  at  least  1,000  pounds  per  square  inch  after  they 


CREAMERY   CONSTRUCTION  35 

have  reached  an  age  of  28  days.  The  blocks  should  be  imbedded 
in  cement  mortar,  with  joints  not  exceeding  %  inch.  The 
greatest  objection  to  the  cement-block  wall  is  its  tendency  to 
absorb  moisture.  This,  however,  is  largely  overcome  by  using 
the  particular  blocks  described  above. 

5.  Sills  and  Lintels.  —  These  are  made  most  satisfactorily 
from  concrete.    The  exterior  window  sills,  if  thus  made,  should 
be  reenforced  and  set  in  place.    The  lintels  should  be  reenforced, 
and  the  concrete  used  should  be  of  a  strong  mixture  containing 
one  or  more  parts  of  cement,  two  parts  of  clean  sand,  and  four 
parts  of  coarse  gravel  or  broken  stone. 

6.  Plastering.  —  The  walls  of  all  rooms  except  the  coal  room 
should  be  covered  with  two  or  three  coats  of  a  good,  hard  wall 
plaster.    The  last  coat  is  to  be  composed  of  hard  cement  wall 
plaster,  finished  with  a  steel  trowel,  and  brought  to  a  true, 
even  surface  free  from  cracks. 

All  plastering  should  be  carried  to  the  floor  and  connected 
with  the  surfacing  from  the  floor.  It  is  often  advisable  to  carry 
the  floor  surfacing  up  on  the  wall  for  about  one  foot.  Instead 
of  the  wall  meeting  the  floor  on  a  right  angle,  the  juncture  may 
be  slightly  rounded,  thus  making  it  easier  to  clean.  A  wall 
finished  as  above  may  be  scrubbed  and  can,  therefore,  be  kept 
in  a  sanitary  condition. 

Chimney.  —  In  planning  the  foundation  for  a  chimney,  it 
is  advisable  to  consult  an  architect  or  at  least  some  experienced 
person.  If  the  soil  is  loose  or  wet,  it  may  be  necessary  to  drive 
piles  on  which  to  build  the  foundation.  Fig.  4  illustrates  a  foun- 
dation and  chimney  built  on  firm  soil  for  a  37-foot  brick  chimney. 

The  chimney  proper  or  stack  should  be  built  from  shale  brick. 
The  core  of  the  chimney  upward  from  the  bottom  of  the  smoke- 
bridging  opening  should  be  built  of  fire  brick  laid  in  fire  clay 
and  securely  bonded  to  the  outer  wall  with  galvanized  iron 
bonds  of  such  length  and  strength  as  to  insure  stability.  Due 
provision  should  be  made  in  the  stack  for  attaching  the  smoke 
bridging  or  flue  from  the  boiler,  and  for  placing  an  iron  clean- 
out  door  in  the  bottom  of  the  stack.  A  door  18  inches  by  18 
inches  is  most  satisfactory  for  the  ordinary  sized  stack. 


36  MANAGEMENT   OF   DAIRY  PLANTS 

Engine  and  Boiler  Foundations.  —  These  should  be  built  in 
accordance  with  details  and  specifications  furnished  by  the  man- 
ufacturer, and  should  be  made  from  concrete  composed  of  one 
part  Portland  cement,  two  and  one-half  parts  clean  sand,  and 
five  parts  coarse  gravel,  broken  stone,  or  tile.  The  foundation 
bolts  should  be  placed  in  gas  piping  ^  inch  greater  in  diameter, 
and  should  extend  to  within  3  inches  of  the  bottom  of  the 
foundation. 

ROOFS 

The  size  and  number  of  timbers  required  to  support  the  roof 
should  be  carefully  figured  by  an  architect.  It  is  considered 
that  timbers  should  not  span  over  more  than  24  feet.  If  the 
building  is  of  such  construction  that  longer  timbers  are  required, 
it  may  be  advisable  to  use  one  or  more  steel  beams,  thereby 
shortening  the  timbers  required  as  well  as  increasing  the  strength 
of  the  building. 

There  are  two  general  types  of  roofs  —  the  flat  and  the 
pitched. 

Flat  Roof.  —  The  flat  roof  is  constructed  in  much  the  same 
manner  as  a  floor  except  that  it  has  a  slight  pitch.  The  most 
common  materials  used  on  this  type  of  roof  are  gravel,  tin,  and 
special  prepared  roofing  such  as  asbestos,  etc. 

1.  Gravel  Roof.  —  The  gravel  roof  should  have  a  pitch  of  from 
5/8  inch  to  i  inch  in  the  foot.    It  is  supposed  to  protect  a  wooden 
roof  better  than  tin,  its  life  being  from  10  to  15  years.    Its  cost 
will  amount  to  about  $7  per  square,1  a  square  being  100  square 
feet. 

2.  Tin  Roof.  —  A  tin  roof,  if  properly  laid  and  kept  painted, 
will  last  from  20  to  30  years.    Its  cost  will  vary  from  $8  to  $11 
per  square.1 

3.  Prepared  Roofing.  —  Such  roofs  are  constructed  in  accord- 
ance with  specifications  furnished  by  the  manufacturer.    The 
cost  of  constructing  a  four-ply  asbestos  roof  at  Hartley,  Iowa, 
was  $7.29  per  square.2 


1  Figured  at  pre-war  cost  of  material  and  labor, 

2  Bui.  139,  la.  Agr.  Expt.  Sta.,  1913, 


CREAMERY   CONSTRUCTION  37 

Pitched  Roof.  —  Materials  recommended  as  fireproof  for  a 
pitched  roof  are  asbestos  shingles,  clay  tiles,  metal  tiles,  and 
slate. 

The  pitch  of  the  roof  is  obtained  by  dividing  the  height  by 
the  span;  thus  we  speak  of  its  being  one-half,  one- third,  and 
one-fourth  pitched. 

PAINTING 

Paint  consists  of  a  liquid  carrier  with  which  is  mixed  a  solid 
substance  called  pigment  which  gives  the  color  desired.  For 
ordinary  painting,  this  liquid  consists  of  linseed  oil;  but  for 
enamel  paints,  varnish  is  used.  White  pigments  consist  of  white 
lead,  white  zinc,  or  zinc  lead.1  Yellow  is  commonly  chromate 
of  lead,  or  chrome  yellow.  Green  is  chrome  green  —  a  mixture 
of  chrome  yellow  and  Prussian  blue.  Blue  is  ultramarine,  or 
sometimes  Prussian  blue.  Brilliant  red  is  usually  a  coal-tar 
color,  while  dull  reds  and  browns  are  oxides  of  iron.  Others 
are  dull  yellow.  Black  paints  are  made  from  carbons  such  as 
boneblack,  lampblack,  or  graphite. 

Paints  should  never  be  applied  to  wet  or  damp  surfaces.  A 
plastered  wall  should  first  be  washed  thoroughly  with  a  solution 
of  soap  and  next  with  a  solution  of  alum.  After  it  is  entirely 
dry,  a  coat  of  oil  should  be  applied,  and  then  the  paint.  If  ap- 
plied directly,  the  paint  will  be  attacked  by  the  lime  in  the 
plaster. 

Knots,  sap,  and  defects  in  the  woodwork  should  be  thoroughly 
covered  with  one  coat  of  shellac  reduced  to  the  proper  consist- 
ency in  pure  grain  alcohol.  All  joints,  nail  holes,  and  similar 
defects  should  be  filled  level  with  white-lead  putty  after  the 
priming  coat  has  been  applied. 

Priming  Coat.  —  The  priming  coat  is  the  first  paint  applied, 
and  usually  consists  of  ordinary  paint  and  raw  linseed  oil  mixed 
in  equal  proportions.  A  gallon  of  priming  coat  will  cover  about 
300  square  feet.  All  exterior  woodwork  that  is  to  be  painted 
should  be  primed  immediately  upon  its  delivery  to  the  premises. 

1  Kidder,  Architects'  and  Builders'  Pocketbook,  1912,  p.  1403. 


38  MANAGEMENT  OF  DAIRY  PLANTS 

Painting  Proper.  —  After  the  priming  coat  is  properly  dried, 
two  or  more  coats  of  ordinary  paint  should  be  applied.  A  gallon 
of  paint  will  cover  about  600  square  feet.  White  paints  are 
frequently  used  in  our  most  modern  creameries,  often  with  a 
darker  wainscoting.  A  very  attractive  effect  is  produced  by 
applying  two  or  three  coats  of  common  white  paint  followed 
with  two  coats  of  white  enamel  paint.  If  the  proper  enamel  is 
secured,  woodwork  or  cement  walls  thus  painted  may  be  washed 
with  soap  and  water. 

Painting  Steel  and  Iron.  —  In  painting  structural  steel  or 
galvanized  iron,  it  should  first  be  thoroughly  scrubbed  and 
dried,  then  painted.  The  first  coat  should  consist  of  pure  red 
lead  and  pure  linseed  oil  mixed  in  the  proportion  of  twenty-five 
pounds  of  lead  to  one  gallon  of  oil.  The  next  two  coats  should 
consist  of  white  lead  and  linseed  oil,  mixed  with  coloring  matter 
as  desired. 

VENTILATION 

A  creamery  or  dairy  establishment  should  be  well  equipped 
with  windows,  and  these  should  be  kept  open  as  much  as  pos- 
sible. But  ventilation  obtained  in  this  way  is  far  from  sufficient. 
If  the  chimney  is  of  good  capacity,  it  can  be  made  to  serve  as 
a  most  excellent  means  of  ventilation.  Mr.  J.  Sorenson  1  recom- 
mends the  placing  of  two  registers  in  the  chimney,  each  to  be 
from  6  to  10  inches  square.  One  is  to  be  located  about  6  inches 
from  the  floor  and  the  other  near  the  ceiling,  the  lower  being 
used  during  cold  weather  and  the  upper  during  summer  months. 

One  type  of  simple  ventilator  is  in  the  form  of  a  flue  extending 
from  the  ceiling  through  the  roof  and  properly  protected  with 
a  hood.  This  type  is  fairly  satisfactory  during  the  summer 
season,  but  during  the  winter  too  much  heat  escapes  through 
the  flue.  A  type  similar  to  the  King  system  of  ventilation  will 
prove  more  satisfactory.  This  should  consist  of  large  openings 
near  the  floor  from  which  flues  extend  through  the  roof  of  the 
building.  The  foul  air  is  drawn  up  and  discharged  through 
these  flues,  and  the  fresh  air  is  admitted  through  a  series  of 

1  Bui.  41,  Minnesota  Dairy  and  Food  Dept.,  1912. 


CREAMERY    CONSTRUCTION  39 

small  openings  placed  midway  in  the  wall  on  the  opposite  side 
of  the  room. 

A  hood  connected  with  a  flue  extending  through  the  roof 
should  be  installed  over  wash  sinks  and  pasteurizers  so  that 
steam  from  such  places  may  be  conducted  away  from  the 
room. 


CHAPTER  IV 
SEWAGE  DISPOSAL 

SEWER  SYSTEM 

ALL  rooms  in  the  creamery,  except  the  coal  room  and  the  re- 
frigerator, should  be  connected  with  the  sewer.  Water  from 
wash  sinks  should  be  conducted  through  a  pipe  directly  into 
the  sewer,  a  trap  being  placed  under  the  sink.  Some  creameries 
have  an  open  drain  or  gutter  in  the  workroom,  with  the  floor 


FIG.  5.  —  A  sewer  system  that  is  readily  cleaned. 


sloping  gently  toward  a  trap  through  which  the  water  runs  into 
a  closed  tile  or  sewer  system. 

If  tile  is  used  in  constructing  the  drainage  system,  it  should 
be  glazed.  The  tile  should  have  a  diameter  of  from  6  to  8  inches, 
and  should  be  so  laid  that  it  may  be  cleaned  with  a  wire  or  iron 
rod,  if  necessary.  The  sewer  system  in  a  large  building  should 
be  constructed  to  clean  readily  by  sections  without  requiring 

40 


SEWAGE   DISPOSAL  41 

pipes  to  be  cut.  This  may  be  accomplished  by  using  Ts  or 
double  Ts  instead  of  Ls,  closing  them  with  plugs. 

Sewer  Traps.  —  A  sewer  trap  is  a  contrivance  holding  water, 
to  be  placed  in  local  drainpipes  wherever  there  is  danger  of  air 
from  a  sewer  getting  into  the  interior  of  a  building.  The  water 
acts  as  a  seal  against  passage  of  gas  in  either  direction,  but 
permits  free  passage  of  liquid  in  the  direction  of  the  main  sewer. 
The  principal  kinds  of  traps  used  in  a  creamery  are  the  bell 
trap,  the  siphon  trap,  and  the  S  trap. 

i.  Bell  Trap.  —  This  is  the  one  most  commonly  used  in 
smaller  creameries.  In  large  creameries,  the  bell  trap  is  often 


FIG.  6.  —  Bell  trap. 

used  as  a  floor  trap,  while  one  of  the  other  forms  may  be  added 
to  the  sewer  system.  The  bell  trap  alone  usually  affords  suffi- 
cient protection  in  small  plants  when  a  comparatively  large 
amount  of  water  is  passing  through  at  short  intervals  and  where 
the  creamery  sewer  is  not  connected  with  some  larger  sewer 
system  as  in  cities.  A  bell  trap  cannot  be  ventilated;  therefore, 
whenever  that  is  found  necessary,  another  style  of  trap  should 
be  installed. 

The  principal  reasons  of  insufficiency  in  a  non- ventilated  trap 
are: 

i.  An  increased  pressure  of  gas  within  the  sewer  may  displace 


MANAGEMENT   OF   DAIRY  PLANTS 


the  water  seal  enough  to  permit  passage  of  gas.  When  this  does 
occur,  the  gas  usually  passes  in  the  form  of  bubbles  and  can  be 
detected  in  that  way. 

2.  Excessive  suction  may  draw  so  much  water  out  of  the  trap 
that  the  remainder  fails  to  act  as  a  seal. 

3.  By  evaporation,  the  water  seal  may  be  so  lowered  that 
gas  is  allowed  to  pass. 

4.  By  absorption,  the  water  may  take  up  gas  on  the  sewer 
side  and  liberate  it  on  the  house  side. 

2.  Siphon  Trap.  —  This  is  per- 
haps the  most  satisfactory  of  traps 
to  be  ventilated.     The  ventilator 
should  be  the  same  size  as  the  pipe 
composing  the  drain.    It  is  placed 
in    the    second    curvature    of    the 
siphon.     It  is  most  satisfactory  to 
place  the  ventilated  trap  in  a  local 
sewer  before  that  enters  the  main 
sewer.    Bell  traps  will  then  usually 
suffice  for  the  floor  traps. 

3.  S-Shaped  Trap.— This  type, 
which  can  be  ventilated,  is  used  frequently  under  sinks  and  to 
some  extent,  also,  in  the  main  sewer  system. 

Catch  Basin.  —  It  is  well  to  have  the  large  drain  that  leads 
out  of  a  creamery  connect  with  a  catch  basin  a  short  distance 
from  the  building.  This  basin  should  be  round,  about  3  feet 
in  diameter,  and  from  5  to  7  feet  deep,  depending  on  the  slope  . 
of  the  ground.  It  may  be  built  from  either  concrete  or  brick 
as  happens  to  be  most  convenient.  Its  use  is  to  catch  all  heavy 
materials,  such  as  sand,  nails,  etc. ;  for  this  purpose,  the  bottom 
of  the  basin  should  be  from  2  to  4  feet  lower  than  the  tile  that 
carries  the  drainage  away  from  it.  This  catch  basin  may  be 
covered  with  plank  and  about  a  foot  of  dirt,  thus  preventing 
any  odors  from  escaping.  It  should  be  inspected  once  or  twice 
a  year  to  make  sure  that  it  is  in  good  working  order.  If  filled 
up  to  any  extent,  it  should  be  cleaned  —  the  work  of  only  a  few 
minutes. 


FIG.  7.  —  Siphon  Trap. 


SEWAGE   DISPOSAL 

CESSPOOL 


43 


In  many  places,  the  creamery  will  be  required  to  purify  its 
sewage  before  allowing  it  to  enter  the  town  sewer  or  before  dis- 
charging it  into  public  streams.  For  that  purpose  a  cesspool 
or  a  septic  tank  is  used. 

The  cesspool  may  be  utilized  if  the  subsoil  is  of  a  loose,  sandy, 
or  gravelly  nature.  The  cesspool  consists  of  a  htle  dug  in  such 


Vonf  Pt'pe 


FIG.  8.  —  Catch  Basin.1 

soil  of  a  size  sufficient  to  hold  several  days'  sewage.  It  should 
be  walled  up  with  stones  not  too  closely  fitted  together  and  the 
top  covered  tight  with  planks  and  earth.  The  sewage  water 
will  seep  away  between  the  stones  into  the  surrounding  loose 
subsoil  and  thence  gradually  disappear.  As  this  subsoil  becomes 
clogged  with  suspended  particles  from  the  sewage,  it  gradually 
decreases  in  efficiency  as  a  filter.  Then  a  second  cesspool  is 
often  dug,  the  sewage  being  conducted  from  one  to  the  other 
through  a  tile  placed  some  distance  from  the  bottom  of  each  pit. 
The  cesspool  is  hardly  to  be  recommended,  as  it  has  too  many 
possibilities  for  danger  through  contamination  of  well  water. 
But  if  used,  it  should  be  located  at  least  400  or  500  feet  from 
the  well. 

1  Bulletin  46,  Minn.  Dairy  and  Food  Dep. 


44  MANAGEMENT   OF   DAIRY  PLANTS 

SEPTIC  TANK 

In  sewage  purification,  the  septic  tank  proves  of  greater  serv- 
ice and  of  less  danger  than  the  cesspool.  In  the  latter,  sewage 
is  purified  by  filtration.  In  the  former,  it  is  cleansed  mainly 
by  a  process  of  fermentation.  This  process  involves  the  follow- 
ing principles  which  in  turn  influence  the  size  and  form  of  con- 
struction of  the  septic  tank: 

1.  Solid  matter  in  the  sewage  which  is  subject  to  fermenta- 
tion must  be  given  time  to  be  decomposed  by  bacterial  action. 
This  calls  for  a  tank  large  enough  to  hold  several  days'  drainage. 

2.  The  bacteria  are  anaerobic  and  work  best  where  sewage  is 
quiet  and  covered  with  air-excluding  scum.    To  accomplish  this, 
the  tank  is  divided  into  compartments  which  will  automatically 
retard  the  flow  of  sewage  between  intake  and  outlet  and  keep 
fresh  sewage  separate  from  the  older,  thus  hastening  decom- 
position in  the  latter. 

It  is  maintained  by  some  that  the  septic  tank  alone  will  be 
sufficient  for  the  purification  of  sewage  from  the  creamery.  But 
it  is  safer  to  connect  the  septic  tank  with  a  filter  bed  over  which 
the  fermented  sewage  is  discharged  from  the  tank,  either  directly 
or  through  an  intervening  dosing  chamber.  By  this  method 
the  purification  of  sewage  is  accomplished  in  two  stages  and 
with  greater  certainty  of  result.1 

1.  The  reduction  process,  w»hich  takes  place  in  the  tank  and 
under  conditions  of  air  exclusion.    Here  the  solid  matter  held 
in  suspension  in  the  sewage  is  decomposed  by  fermentation  into 
an  easily  burned  substance. 

2.  The  oxidation  process,  occurring  in  the  filter  bed  and  with 
greatest  possible  exposure  to  air.    Here  the  products  of  reduc- 
tion are  spread  over  the  surfaces  of  numerous  soil  particles  and 
thus  purified  through  oxidation. 

Size  of  Tank.  —  The  tank  must  be  so  large  that  it  will  hold 
sewage  accumulations  long  enough  for  complete  decomposition 
to  take  place.  In  creamery  sewage,  the  solid  matter  is  largely 
milk  remnants  in  which  decomposition  is  confined  mainly  to 

1  Wisconsin  Exp.  Sta.  Bulletin  245,  1915,  p.  54. 


SEWAGE   DISPOSAL  45 

liquefaction  of  protein,  breaking  up  of  milk  sugars,  and  emulsi- 
fication  of  fats.  This  generally  necessitates  a  larger  tank  than 
for  a  like  amount  of  ordinary  sewage. 

The  size  necessary  to  take  care  of  this  daily  flow  can  be  es- 
timated in  various  ways,  one  being  to  assume  that  the  amount 
of  sewage  will  be  from  i  to  ij/£  gallons  for  every  pound  of  butter 
manufactured.  In  general,  a  septic  tank  for  creamery  use 
should  be  large  enough  to  hold  the  sewage  which  would  accumu- 
late for  about  six  days  in  the  summer  season.  As  fermentation 
will  be  slower  during  winter,  the  sewage  must  be  left  longer  in 
the  tank  in  order  to  decompose;  but  this  is  offset  by  the  smaller 
quantity  of  water  used  during  winter  months.  Hence,  one  size 
will  usually  prove  satisfactory  the  year  round. 

But  before  a  septic  tank  is  installed,  the  sewer  from  the  build- 
ing should  be  so  connected  that  water  which  does  not  need 
purification  may  be  conducted  away  from  the  creamery  without 
passing  through  the  septic  tank,  and  only  such  drainage  as  needs 
purification  should  be  admitted  to  the  tank;  otherwise,  the 
sewage  in  the  tank  becomes  too  dilute  and  a  much  larger  tank 
will  be  required.  Chemicals,  such  as  strong  acids  or  alkalies, 
should  be  eliminated  from  sewage  for  the  tank. 

Construction  of  Tank.  —  The  septic  tank  should  be  so  located 
that  its  inlet  is  at  least  somewhat  below  the  outlet  from  the 
factory.  The  most  satisfactory  material  for  construction  is 
concrete.  To  facilitate  decomposition,  as  explained  above,  the 
tank  should  be  divided  into  three  compartments  of  equal  size. 
The  outside  walls  and  bottom  should  be  about  12  inches  thick; 
the  partitions  may  be  reduced  to  6  or  8  inches  in  thickness. 

Siphons  connect  the  first  compartment  with  the  second  and 
the  second  with  the  third.  They  prevent  the  scum  from  being 
carried  away  and  thus  destroying  the  putrefactive  bacteria. 
They  also  prevent  the  drainage  from  running  across  the  surface 
of  the  tank  without  remaining  to  be  decomposed.  These  two 
siphons,  together  with  the  inlet  and  outlet  pipes,  may  be  con- 
structed from  4-inch  pipe. 

The  inlet  pipe  discharging  sewage  from  the  factory  into  the 
tank  and  the  outlet  pipe  at  the  opposite  end  should  each  have 


46  MANAGEMENT  OF  DAIRY  PLANTS 

an  elbow  on  the  inside  of  the  tank  so  that  the  drainage  will  be 
delivered  and  take  its  exit  below  the  surface  of  sewage  already 
in  the  tank,  thus  not  disturbing  the  scum. 

The  partitions,  the  elbows  at  the  two  ends,  and  the  siphon 
connections  all  operate  to  compel  the  liquid  to  run  slowly 
through  the  tank  as  desired  and  to  keep  the  scum  undisturbed. 
As  the  drainage  enters,  the  substances  not  in  suspension  —  solid 
matter,  sand,  etc.  —  settle  to  the  bottom,  and  leave  the  liquid 
portion  to  be  at  once  attacked  by  the  numerous  decomposing 
ferments  beneath  the  scum. 

The  cover  of  the  tank  may  be  constructed  from  planks  or 
from  concrete,  the  latter  being  the  most  satisfactory.  It  should 
be  provided  with  manholes  through  which  the  sediment  in  the 
tank  may  be  removed  at  least  once  a  year. 

Dosing  Chamber.  —  Farrington  and  Davis  1  recommend  that 
a  dosing  chamber  be  provided  between  the  septic  tank  and  the 
filter  bed,  its  purpose  being  to  compel  the  liquid  from  the  tank 
to  discharge  onto  the  filter  bed  intermittently  instead  of  contin- 
uously and  thus  allow  air  to  permeate  the  filter  bed  at  intervals. 

The  dosing  chamber  should  be  large  enough  to  contain  effluent 
from  the  tank  sufficient  to  flood  the  filter  bed  from  one  to  three 
inches  deep.  The  depth  of  the  chamber  should  equal  the  dis- 
charging depth  of  some  standard  siphon. 

Filter  Bed.  —  This  is  constructed  from  about  a  foot  of  gravel 
on  top  of  which  is  added  three  or  four  feet  of  coarse  sand,  tile 
being  laid  at  the  bottom  of  the  gravel  for  carrying  the  water 
away.  Farrington  and  Davis  estimate  that  the  area  of  the 
filter  bed  should  be  such  that  the  rate  of  application  of  the  settled 
wastes  would  not  exceed  25,000  gallons  per  acre  in  24  hours. 

gallons  of  waste  x  43,560 

Thus,   -  —  °  °     =  area  of  filter  needed,  in 

25,000 

square  feet. 

If  the  effluent  has  too  strong  an  odor,  they  recommend  that 
chloride  of  lime  be  added  to  it  in  the  dosing  chamber  about  an 
hour  before  its  discharge  onto  the  filter  bed.  The  proportion 

1  Wisconsin  Exp.  Sta.  Bulletin  245,  1915,  p.  13. 


SEWAGE   DISPOSAL 


47 


Sw. 

£  v. 

•i-  -ts^.  ££&££&iiSs&ii 

^Vv-JL'^Vt 

|.  MX—  A 

S 

j 

1      J 

N 

ji 

1  i 

uj 

«*l 

^ 

V 

•  —                                       V 

,                                %! 

^a  L^rtY^^itr  trttft^i 

•^-?&2z3t 

Q 

I 


J-l 


S 


1 


O 

§ 
'•8 


. 


I 


48  MANAGEMENT   OF   DAIRY  PLANTS 

of  lime  chloride  thus  added  should  be  from  i  to  5  pounds  to 
1,000  gallons  of  effluent. 

Sewage  for  Irrigation.  —  Experiments  have  been  carried  on 
to  some  extent  in  Denmark  and  Ireland,  using  creamery  sewage 
for  irrigating  purposes  and  flooding  several  small  fields  alter- 
nately by  intermittent  discharge.  In  the  United  States,  this 
would  be  of  little  interest  to  city  manufacturers  and,  for  the 
present,  of  but  small  value  to  country  operators. 


CHAPTER  V 
REFRIGERATION 

ONE  of  the  chief  requirements  in  any  creamery  is  adequate 
means  for  keeping  the  products  it  handles  properly  cooled.  Re- 
frigeration may  be  brought  about  either  by  a  natural  or  by  a 
mechanical  system.  In  either  case,  however,  it  is  essential  that 
cooling  rooms  and  cooling  tanks  are  properly  insulated. 

INSULATION 

A  thermic  insulator  is  anything  which  prevents  or  retards 
the  transmission  of  heat.  As  applied  to  a  creamery,  insulation 
means  the  separation  of  its  storage  rooms  from  outside  tempera- 
tures by  non-heat-conducting  walls,  ceilings,  floors,  windows  and 
doors.  The  insulator  conserves  refrigeration  which  has  been 
created  through  natural  or  artificial  means;  hence,  the  slower 
its  powers  of  heat  transmission,  the  better  the  insulator  will  be. 
Any  rules  of  guidance  for  effective  insulation  must,  therefore, 
be  based  on  the  principles  of  heat  transmission. 

Transmission  of  Heat.  —  Heat  may  be  transmitted  in  three 
ways: 

1.  By  Radiation.  —  Heat  is  transferred  from  one  body  to  an- 
other where  the  temperature  of  the  intervening  medium  remains 
unaltered.    This  form  of  transmission  is  of  less  importance  in 
considering  the  subject  of  insulation. 

2.  By  Convection.  —  Heat  is  transferred  by  convection  when 
it  is  carried  from  one  point  or  object  to  another  by  means  of 
some  outside  agent  as  air,  water,  or  any  gas  or  fluid;  thus  heat 
may  be  removed  from  a  cold-storage  room  by  the  brine  method 
of  refrigeration.    In  the  case  of  a  refrigerator  wall  with  large 
air  space,  the  face  next  to  the  outer  air  is  warmer  than  the  face 
next  to  the  cold  room.     In  the  air  space,  the  air  against  the 

49 


50  MANAGEMENT   OF  DAIRY  PLANTS 

outer  wall  becomes  heated  and  rises,  its  place  being  taken  by 
the  cold  air  against  the  inside  wall.  As  this  in  turn  becomes 
warm,  it  forces  its  way  upward;  the  other  air,  having  gradually 
cooled,  drops  to  the  bottom;  thus  a  continuous  circulation  is 
set  up  inside  the  air  space  itself  and  heat  is  constantly  trans- 
ported by  convection. 

3.  By  Conduction.  —  This  mode  of  transmission  is  accdm- 
plished  by  the  transfer  of  heat  from  one  molecule  to  another. 
It  is  the  mode  oftenest  to  be  reckoned  with  in  problems  of  in- 
sulation. 'The  heat  conductivity  of  dense  substances,  such  as 
metals  whose  molecules  are  heavy  and  close  together,  is  high; 
the  conductivity  of  lighter  material,  such  as  wood,  is  less;  while 
that  of  the  gases  is  extremely  low.  An  absolute  vacuum  would 
be  an  absolute  insulator,  but  that  is  practically  impossible  on 
a  large  scale.  Material  containing  the  greatest  amount  of  air 
divided  in  the  smallest  air  spaces  forms  the  best  insulating 
material. 

Formula  for  Estimating  Heat  Conduction.  —  Of  course, 
there  is  no  building  material  or  form  of  construction  which  gives 
perfect  insulation.  The  total  amount  of  heat  which  any  given 
insulation  will  transmit  in  24  hours  is  the  measure  of  the  re- 
frigeration lost  through  imperfect  insulation  in  that  time,  and 
hence  of  the  refrigeration  that  must  be  applied  every  24  hours 
to  offset  that  loss  and  keep  the  storage  room  at  a  given  degree 
of  temperature.  For  calculating  *  this  loss  and  consequently 
needed  offset,  the  following  formula  may  be  used: 

R  =  fn  (t  —  /')  British  thermal  units  l 

In  the  foregoing  formula,  /  represents  the  total  square  feet 
of  insulating  surface  surrounding  a  given  storage  room  —  walls, 
floor,  ceiling,  windows,  and  doors;  n  is  the  number  of  B.  T.  U. 
of  heat  transmitted  through  such  surface  every  24  hours  for 
each  square  foot,  for  each  degree  Fahrenheit  of  difference  in 
temperature  between  inside  and  outside  of  wall;  /  is  the  average 
temperature  outside  the  wall,  and  t'  is  the  temperature  to  be 

1 A  B.  T.  U.  is  the  amount  of  heat  required  to  raise  the  temperature  of  i  pound 
of  water  i°  F.,  at  its  greatest  density. 


REFRIGERATION  5 1 

maintained  inside.  R  represents  the  number  of  units  of  re- 
frigeration lost  through  these  walls  every  24  hours,  and  hence 
of  refrigeration  that  must  be  supplied  every  24  hours  to  offset 
that  loss. 

In  other  words,  R  is  the  measure  of  ice  meltage  in  24  hours, 
expressed  in  British  thermal  units.  This,  translated  into  tons  l 
of  ice  which  can  support  that  meltage,  gives  the  following 
formula: 

fn(t-f)' 

R  =  -^—          -  tons 
284,000 

Factors  Governing  Insulation  of  Storage  Rooms.  —  The 

selection  and  use  of  insulating  materials  are  to  be  guided  by  the 
following  factors: 

i.  Insulating  Powers  of  Materials,  Structures,  and  Walls.  — 
The  insulating  power  of  any  material,  structure,  or  wall  is  really 
the  same  as  its  heat-conducting  power  applied  inversely,  and 
is  measured  by  the  value  of  n  as  given  in  the  formulas  above. 

A.  Insulating  Materials.  —  For  different  materials,  Siebel  2 
gives  the  following  values  for  n: 

For  pine  wood 2.0  B.  T.  U. 

"   mineral  wool 1.6 

"   granulated  cork 1.3 

:<   wood  ashes i.o 

"   sawdust i.i 

"   charcoal,  powdered 1.3 

"  cotton 0.7 

"   soft  paper  felt 0.5 

B.  Insulating  Structures.  —  In  the  following  table  by  Starr,3 
the  value  of  n  for  different  structures  is  shown  in  column  I. 
Column  II  shows  the  meltage  of  ice  in  pounds  per  24  hours, 
where  the  difference  in  temperatures  is  40°  F.  and  the  trans- 
mitting surface  is  100  square  feet. 

1  To  convert  i  pound  of  ice  at  32°  F.  into  water  at  32°  F.  requires  an  amount  of 
heat  equal  to  142  B.  T.  U.  —  known  as  the  "latent  heat  of  fusion''  for  ice. 

2  Siebel's  Compend.  of  Mechanical  Refrigeration  and  Engineering,  1911,  p.  117. 
3 1 bid,  p.  381.  j 


S2 


MANAGEMENT   OF   DAIRY   PLANTS 


TABLE  I 
TRANSMISSION  OF  HEAT  THROUGH  VARIOUS  INSULATING  STRUCTURES 


Structures 


5/8-in.  oak  —  paper,  i  in.  lampblack,  7/8-in.  pine.    (This  is 

the  ordinary  small  stock  family  refrigerator.) 5.7 

One  7/8-in.  board,  i-in.  pitch,  i  7/8-in.  board 4.90 

Four  7/8-in.  spruce  boards,  two  papers,  solid,  no  air  space  .    4. 28 
Two  double  boards  and  paper  (four  7/8-in.  boards),  and  one 

air  space 3.71 

One  7/8-in.  board,  2-in.  pitch, one  7/8-in.  board 4. 25 

One  7/8-in.  board,  2^2-in.  mineral  wool,  paper,  one  7/8-in. 

board 3.62 

Two  7/8-in.  double  boards  and  two  papers,  i-in.  hair  felt.  .    3.318 
Two  7/8-in.  boards  and  paper,  i-in.  sheet  cork,  two  7/8-in. 

boards  and  paper 3 . 30 

One  7/8-in.  board,  paper,  2-in.  calcined  pumice,  paper  and 

7/8-in.  board 3 . 38 

Four   double    7/8-in.   boards  with   paper   between    (eight 

boards)  and  three  8-in.  air  spaces 2.7 

Hair-quilt  insulator,  four  boards,  four  quilts,  hair 2.51 

One  7-in.  board,  6-in.  pat.  silicated  strawboard,  air  cell 

finished  inside  with  thin  layer  pat.  cement 2 . 48 

One  7/8-in.  board,  paper,  3-in.  sheet  cork,  paper,  one  7/8-in. 

board 2.10 

Two  7/8-in.  boards  and  paper,  8-in.  mill  shavings  and  paper, 

two  7/8-in.  boards  and  paper i .  35 

Same  slightly  moist i .  80 

Same  damp 2.10 

Double  boards  and  paper,  i-in.  air,  4-in.  sheet  cork,  paper, 

one  7/8-in.  board i .  20 

Same,  with  5-in.  sheet  cork 90 

7/8-in.  board,  paper,  i-in.  mineral  wool,  paper,  7/8-in.  board    4 . 6 
Double  boards  and  papers,  4-in.  granulated  cork,  double 

boards  and  paper 1.7 


C.  Insulating  Walls.  —  Pine  wood  is  a  good  insulator.    When 
used  for  walls,  the  value  for  n  has  been  given  as  2  B.  T,  U. 


REFRIGERATION  53 

Brick  is  a  much  better  conductor  of  heat  and  therefore  a  poorer 
insulator.  In  accordance  with  results  obtained  in  Germany,1 
the  value  of  n  for  a  brick  wall  10  inches  thick  is  8.5  B.  T.  U. 
If  an  air  space  is  added  to  the  wall,  this  figure  is  reduced  to 
6.1  B.  T.  U.  If  the  wall  is  absolutely  air-tight,  the  thickness 
of  the  air  space  is  immaterial. 

According  to  the  same  report,  sandstone  and  limestone  are 
still  higher  conductors  of  heat  than  brick.  In  a  1 2-inch  wall 
built  from  sandstone,  the  value  was  found  to  be  ii.o  B.  T.  U.; 
and  in  a  wall  built  from  limestone  of  the  same  thickness,  n 
proved  to  be  equal  to  13  B.  T.  U. 

For  a  single-sashed  window,  the  factor  n  may  be  taken  as 
12 ;  for  a  double-sashed  window,  as  7  (Box). 

D.  Thickness  of  Insulation.  —  The  heat-conducting  powers 
of  any  insulation  are  approximately  inversely  proportional  to 
its  thickness,  other  conditions  being  equal.  A  xo-inch  brick 
wall  will  transmit  8.50  B.  T.  U.,  whereas  a  40-inch  wall  under 
the  same  conditions  will  transmit  only  3.85  B.  T.  U. 

2.  Temperature  to  be  Maintained.  —  A  decrease  in  the  tem- 
perature to  be  maintained  requires  a  corresponding  increase  in 
insulating  power.    This  is  illustrated  in  the  following  table: 

Temperature  from  — 10  to    5°  F.,  use  6  in.  cork 
5  to  20°  "      "    5   "      " 
20  to  32°  "      "    4   "       " 
32  to  45°  "      "    3    "       " 
"         45  and  above  "    2   "      " 

3.  Climatic  Conditions.  —  These  will  naturally  affect  the  dif- 
ference in  temperature  on  the  two  sides  of  a  wall  and  will  con- 
sequently affect  the  transmission  of  heat.     They  should  be 
given  due  attention  when  constructing  a  cold-storage  room 
close  to  an  engine  room  or  a  boiler  room,  or  when  constructing 
it  with  an  outside  wall  face,  or  when  locating  it  on  a  south 
rather  than  a  north  exposure. 

4.  Other  Factors.  —  The  materials  used  for  insulation  should 
be  free  from  rot,  mold,  and  offensive  odors.    In  both  nature  of 

1  SiebePs  Compend.  of  Mechanical  Refrigeration  and  Engineering,  1911,  p.  382. 


54  MANAGEMENT   OF  DAIRY    PLANTS 

materials  and  form  of  construction,  the  walls  should  be  vermin- 
and  germ-proof  and  should  give  no  inducement  for  mice  and 
rats  to  nest  within  them.  Insulation  should  be  not  only  moisture- 
proof,  but  also  elastic  and  of  light  weight  to  prevent  settling. 
Other  qualities  to  be  regarded  are  the  degree  of  fireproofness, 
durability,  strength,  appearance,  cost,  etc. 

Construction  for  Insulation.  —  All  refrigerators  should  be 
constructed  with  a  vestibule.  When  the  door  of  the  vestibule 
is  open,  the  door  of  the  refrigerator  should  be  kept  closed,  and 
vice  versa. 

1.  Dead  Air  Space.  —  This  is  the  oldest  form  of  insulation. 
Although  the  air  itself  is  a  good  insulator,  it  should  be  divided 
into  small  air  cells  to  be  most  efficient.    In  a  large  space,  heat 
is  carried  readily  from  one  side  of  the  wall  to  the  other  by  convec- 
tion, and  the  slightest  crack  or  even  nail  hole  will  tend  greatly 
to  reduce  insulating  power. 

The  inefficiency  of  this  form  of  construction  is  demonstrated 
by  Ruddick.1  A  refrigerator  thus  constructed  with  a  6-inch 
dead  air  space  melted  1,879  pounds  of  ice.  During  the  same 
time  and  under  the  same  conditions,  a  refrigerator  of  the  same 
size  and  of  same  construction,  except  that  the  6-inch  hollow 
space  was  filled  with  sawdust,  melted  1,328  pounds  of  ice.  The 
third  type  of  refrigerator,  similarly  constructed  with  6  inches 
of  shavings,  melted  1,055  pounds  of  ice  during  the  same  time 
and  under  the  same  conditions.  The  average  temperature  held 
in  the  refrigerators  was  42°  F.  for  the  one  built  with  air  spaces, 
41°  F.  for  the  one  insulated  with  sawdust,  while  the  temperature 
was  reduced  to  37.6°  F.  in  the  one  insulated  with  shavings. 

2.  Sawdust  and  Shavings.  —  As  already  stated,  both  are  effi- 
cient insulators;  but  they  must  be  kept  dry.    Sawdust  absorbs 
moisture  more  readily  than  shavings.    When  damp,  both  lose 
greatly  in  efficiency;  and  sawdust  will  then  not  merely  become 
a  most  excellent  conductor  of  heat,  but  will  also  settle  and  leave 
an  empty  space  on  top.    Shavings,  if  properly  packed,  will  not 
settle.    They  are,  as  a  whole,  the  most  satisfactory  of  the  two 
materials. 

1  Canada  Dairy  Commr.  Rept.  for  1906,  pp.  52-55. 


REFRIGERATION 


55 


'«*»« 

^Ti,Gl 
^S^JPaprr 
e£~T  4  G  400  rrf  i  .y 


^-w^.^.,^..-,-.j..,  ...uj..,r.,, ;/£* 


FIG.  10.  —  Sections  of  insulated  walls  by  Ruddick. 


56  MANAGEMENT   OF  DAIRY  PLANTS 

3.  Cork.  —  Cork  is  perhaps  one  of  the  most  satisfactory  ma- 
terials for  both  efficiency  and  durability.    It  is  used  in  the  form 
of  granulated  cork  and  also  as  cork  slabs.    Slabs  are  put  on  in 
one  or  more  courses,  in  the  latter  case  all  joints  being  broken. 

In  accordance  with  instructions  given  by  a  constructing  firm 
the  cork  board  should  be  erected  in  a  half-inch  Portland  cement 
mortar  mixed  in  the  proportion  of  one  part  Portland  cement 
to  two  parts  clean,  sharp  sand.  Against  the  exposed  surface  of 
this  cork  board,  a  Portland  cement  plaster  finish,  about  ^  inch 
in  thickness,  is  applied  in  two  coats.  The  first  coat  is  approxi- 
mately y£  inch  in  thickness,  mixed  in  the  proportion  stated 
above,  and  rough  scratched;  the  second  coat  is  approximately 
y£  inch  in  thickness,  mixed  in  the  proportion  of  one  part  Port- 
land cement  to  one  and  one-half  parts  of  clean,  sharp  sand, 
and  brought  to  a  finish  with  a  steel  trowel.  The  plaster  should 
be  kept  wet  by  daily  sprinkling  for  at  least  a  week  after  the 
second  coat  is  applied,  in  order  to  reduce  cracking  to  a 
minimum. 

The  ceiling  and  floor  are  insulated  in  a  manner  similar  to 
the  wall.  The  cork  boards  should  fit  closely  together  at  the 
corners  (see  Fig.  n).  The  floor,  if  a  ground  floor,  should  be 
dug  down  to  such  depth  that,  after  the  insulating  material  has 
been  applied,  it  will  be  level  with  other  floors  in  the  building. 
Such  a  floor  may  be  constructed  as  follows:  After  the  ground 
has  been  properly  graded,  cinders  to  the  depth  of  about  4  inches 
or  more  may  be  added.  These  are  thoroughly  packed  and  on 
them  is  placed  about  4  inches  of  concrete.  On  top  of  this  the 
cork  boards  are  laid  so  as  to  join  with  the  cork  boards  of  the 
walls.  The  floor  is  finished  by  adding  about  4  inches  of  con- 
crete on  top  of  the  cork  and  then  about  %  inch  of  finishing 
cement,  as  in  laying  any  other  cement  floor. 

4.  Mineral  Wool.  —  Mineral  wool  is  made  from  the  slag  of 
blast  furnaces.    It  will  absorb  moisture;  but  aside  from  that, 
it  meets  the  requirements  of  an  efficient  insulating  material. 
It  is  now  furnished  in  slabs  as  the  most  convenient  form  for 
use.     In  this  form  it  may  be  put  on  walls  in  the  same  manner 
as  cork  slabs;  but,  not  being  waterproof,  it  is  usually  put  on 


REFRIGERATION 


57 


\^ 

<<z 

:x> 

rf^v 

V-''.-''v 

^ 
& 

;'.'••  .\T'^ 

If; 

'x  •'•  •"''" 
»  '.;''5': 

life 

~-o 

>>'-:.  ^ 

|@ 

[^ 

I 

;^,,,.;. 

-'-v 

11' 

v.-Vv;'J 

:•  •'•';  '•;'• 

'•:•:•. 

y^ 

!i-i',"^.-.' 

;*?*?'•! 

•;•-• 

1 

:'.*";-.;; 

|l 

| 

| 

S^ 

o;.'-.  '..":'• 

| 

m 

•.<>•'•''..''> 

M 

^  1  £ 

•"•.•3,':i"' 

I 

I 

^;':";-' 

^ii  ''"< 

;;';''."••/;. 

o  ^  ^  ^)  k 

;-^-,'v.« 

t't 

;'/; 

'•  V'-"" 

iv-  .'•>'; 

^  £^  ci! 

:'/;-¥ 

''•;'• 

I 

"fl 

':  .  s'.-'.''..i 

<n  <o  **  8  G 

V:"^ 

••;;; 

I;,'-, 

S^^; 

•;•'>'•'•'•'•  : 

r*   •'•"'''  " 

s*VVVV 

/i'-'-v 

-^'_ 

:,:' 

KS; 

-•  '  ''^'f-'f 

\    \    \    \    \ 

-.;:•*•'•;.'? 

V:; 

:--':^v' 

'••','.'.  ^ 

^  -Q  <0  •  O  ^ 

•ii.'i-;:';: 

(  § 

1 

"?:  •'  :  •• 

{.•••.-'.•}• 

'^'*,'^.-.- 

'•'-''  «'..'  v 

/_ 

;.-/ 

^'-i.  *• 

:-'*.;-.»' 

13 

I 

| 

•*,/'''  -w 

< 

I 

M 

o; 

'-;•„•••'.  o 

1 

1 

l>l 

Hi 

P^^^^^^^^^^^^S^^^^^^^^ 

}          7™ 

58  MANAGEMENT   OE   DAIRY  PLANTS 

with  a  waterproof  hot  cement  made  from  a  mixture  of  pitch 
and  asphaltum.  As  in  the  case  of  cork,  it  is  finished  in  a  smooth 
cement  plaster. 

5.  Lith.  —  Lith  is  considered  to  be  as  satisfactory  an  insulat- 
ing material  as  cork,  except  that  it  takes  up  moisture  more 
readily.    It  is  cheaper  than  cork.    The  construction  with  lith 
is  the  same  as  with  cork.1 

6.  Other  Materials.  —  Other  insulators,   such   as  hair  felt, 
might  be  mentioned;  but  this  has  not  become  of  much  impor- 
tance for  creamery-storage  insulation. 

SYSTEMS  OF  REFRIGERATION 

Two  systems  of  refrigeration  exist  —  the  "Natural"  and  the 
"Mechanical."  The  natural  system  uses  ice  as  its  source  of 
refrigeration;  while  the  mechanical  system  removes  the  heat  by 
merchanical  methods. 

NATURAL  REFRIGERATION 

Methods.  —  In  natural  refrigeration,  the  ice  used  for  cooling 
purposes  must  be  stored,  requiring  an  ice  house  more  or  less 
insulated.  In  using  that  ice  for  chilling  stored  products,  the 
refrigerator  may  be  cooled  by  any  one  of  three  different  methods. 
The  temperature  may  be  lowered  by  the  use  of  ice  placed  in 
an  ice  bunker  located  in  the  refrigerator,  or  by  connecting  the 
refrigerator  with  a  contiguous  insulated  ice  house,  or  by  in- 
stalling a  tank  above  the  refrigerator  from  which  ice-cooled 
brine  is  circulated  through  the  refrigerator  in  a  system  of  pipes. 

i.  Ice  Bunker  Method.  —  This  is  the  oldest  form  of  refrigera- 
tion and  is  yet  in  most  common  use  in  the  smaller  creameries. 
The  ice  is  placed  in  a  bunker  overhead  and  usually  at  one  end 
of  the  refrigerator.  The  refrigerator  is  frequently  built  against 
an  outside  wall  through  which  a  small  refrigerator  door  admits 
ice  from  outside  to  the  ice  bunker.  By  leaving  this  door  open 
during  cool  nights,  the  refrigerator  may  be  kept  in  good  condi- 
tion without  ice  during  a  good  portion  of  the  year. 

*For  mineral  wool  slabs  and  Lith  metal  lath  should  be  used  for  holding  the 
plaster. 


REFRIGERATION 


59 


The  ice  bunker  should  be  so  placed  and  constructed  that  it 
will  cause  circulation  of  the  air  in  the  refrigerator.  This  is  done 
by  placing  a  tight  board  screen  on  one  side  of  the  bunker  and 
slats  or  cleats  on  the  opposite  side  (Fig.  12).  The  air  will  then 
enter  the  ice  bunker  from  above  the  board  screen  and  come  in 
contact  with  the  ice.  The  moisture  from  the  air  unites  with 
the  water  melting  away  from  the  ice  and  is  carried  away  with 
it;  the  air,  which  thus  becomes  dryer  and  chilled  by  the  ice, 
descends  through  the  open  side  of  the  bunker.  If  both  sides 


FIG.  12.  —  Section  showing  perfect  air  circulation  in  an 
ice  bunker  refrigerator. 

were  open,  the  air  would  descend  from  both  sides  and  thus 
result  in  conflicting  currents  which  would  check  the  circulation. 
The  bottom  of  the  ice  box  on  the  inside  is  covered  with  gal- 
vanized iron  sheeting  turned  up  on  the  walls  of  the  box  from 
4  to  6  inches.  From  this  galvanized  pan  a  galvanized  iron  pipe 
carries  the  water  away.  This  water  may  be  collected  outside 
of  the  refrigerator  and,  if  the  ice  is  clear,  may  be  used  for  testing 
and  other  laboratory  purposes.  The  pipe  carrying  water  from 
the  ice  pan  should  be  equipped  with  a  trap  to  prevent  com- 
munication of  air  between  the  refrigerator  and  the  outside. 
The  bottom  of  the  ice  box  should  be  insulated  on  the  outside 
and  the  ends  of  the  box  tightly  boarded  up. 


60  MANAGEMENT  OF  DAIRY  PLANTS 

2.  Insulated  Ice  House  Method.  —  By  this  method,  the  refrig- 
erator is  connected  directly  with  the  ice  house.  This  plan,  as 
far  as  known,  originated  in  Minnesota  l  and  in  Canada.2 

A.  Advantages.  —  The  principal   claim  made  for   this  ice 
house  is  its  saving  of  labor,  as  the  ice  need  not  be  handled  after 
once  placed  in  the  ice  house.    It  is  also  more  sanitary  than  the 
oH-style  ice  bunker,  and  the  refrigerator  connected  with  the 
insulated  ice  house  is  always  dry  and  well  cooled.     Further- 
more, as  the  ice  taken  from  it  is  always  clean,  none  is  lost  through 
having  to  cleanse  it  before  using.    The  only  disadvantage  that 
might  be  mentioned  here  is  the  original  cost  of  construction. 

B.  Construction.3  —  For  the  construction  of  this  system,  it  is 
recommended  that  the  ceiling  in  the  ice-storage  part  should  be 
as  high  as  possible  —  from  16  to  22  feet,  while  the  refrigerator 
room  should  be  from  6^2  to  7^  feet  high.    The  walls  between 
the  ice  house  and  refrigerator  need  not  be  as  heavily  insulated 
as  the  outside  walls;  but  they  should  be  as  nearly  air-tight  as 
possible,  except  near  the  floor  and  ceiling  where  openings  should 
be  provided  for  circulation  of  air.    The  cold  air  will  pass  from 
the  ice-storage  room  into  the  refrigerator  through  the  floor 
vents,  will  gradually  warm  up  and  rise  to  the  ceiling,  and  will 
thence  pass  back  into  the  ice-storage  room  again  through  air 
flues,  coming  there  in  contact  with  the  ice  and  depositing  its 
absorbed  moisture.     The  air  flues  from  the  upper  vents  are 
necessary  in  order  to  make  the  air  pass  over  to  the  farther  wall 
and  thus  effect  a  complete  circulation  throughout  the  ice  house. 
To  allow  free  circulation,  the  total  area  of  all  openings  at  the 
floor  should  equal  about  600  square  inches,  with  the  same  total 
for  ceiling  vents.    These  vents  should  be  closed  during  winter 
weather  to  keep  the  refrigerator  from  getting  too  cold. 

The  walls,  ceiling,  and  floor  of  this  ice  house  should  be  insu- 
lated in  the  same  manner  as  regular  cold-storage  rooms,  not 
less  than  4  inches  of  cork  or  lith  being  used.  It  is  recommended 
that  the  floor  of  the  ice  room  have  a  slope  of  3/8  inches  to  the 

1  Bulletin  41,  Minnesota  Dairy  and  Food  Department,  1912. 

2  Report  of  Dairy  Commissioner  for  the  Dominion  of  Canada,  1006. 

3  Bulletin  No.  41  of  Minnesota  Dairy  and  Food  Department,  1912. 


REFRIGERATION 


6l 


62  MANAGEMENT   OF   DAIRY  PLANTS 

foot,  leading  to  a  cement  tank  set  in  the  corner  of  the  ice-storage 
room  to  catch  ice  meltage.  This  meltage  can  be  pumped  thence 
to  the  cream  vats  for  cooling  purposes.  The  tank  should  be 
3  feet  by  4  feet  by  8  feet  deep,  or  larger,  and  set  flush  with  the 
floor.  It  should  have  an  overflow  connected  with  the  sewer 
through  a  trap.  Two  i>^-inch  galvanized  iron  pipes  should  be 
laid  in  asphalt  and  granulated  cork  4  feet  below  the  floor,  con- 
necting the  tank  with  the  cream  vats  through  a  pump.  By  one 
pipe  the  cold  water  will  be  carried  from  the  bottom  of  the  ice- 
meltage  tank  to  the  bottom  of  the  cream  vats,  and  by  the  other 
pipe  that  water  will  be  returned  to  the  same  tank  from  the 
surface  of  the  cream  vats.  If  the  water  in  the  tank  is  not  suffi- 
cient to  cool  a  large  amount  of  cream,  ice  may  be  placed  in  this 
tank  instead  of  bringing  it  into  the  creamery. 

A  small  window  with  six  or  seven  layers  of  sash,  giving  five  or 
six  intervening  air  spaces,  should  be  placed  next  the  ceiling  of 
the  ice  room  to  give  light.  Another  similar  window  should  be 
placed  in  the  refrigerator,  about  5  or  6  feet  above  the  floor. 

The  outside  door  to  the  ice  house  should  be  3  by  7  feet. 

C.  Filling  the  Ice  House.  —  While  packing  the  ice,  a  working 
space  about  the  size  of  four  cakes  of  ice  should  be  left  inside  the 
doorway.  It  is  recommended  that  the  ice  be  cut  into  oblong 
cakes  and  be  piled  lengthwise  and  crosswise  in  alternate  layers, 
thereby  binding  together  and  preventing  the  ice  from  leaning 
against  the  wall.  When  the  ice  room  has  been  filled,  the  out- 
side door  should  be  closed  and  sealed  with  suitable  insulation. 

3.  Gravity-Brine  Method.  —  This  method  of  refrigeration  con- 
sists of  a  system  of  continuous  coils  of  pipe  containing  brine  of 
such  strength  that  it  will  not  freeze.  Part  of  this  system  of 
coils  extends  through  a  salt-and-ice  tank  above  the  refrigerator. 
Here  ice  and  salt  are  mixed  in  proper  proportions  to  insure  the 
desired  temperature  for  the  brine  passing  through  it.  The 
brine  thus  cooled  descends  by  force  of  gravity  through  the 
lower  portion  of  the  coil  extending  through  the  storage  room. 
There  it  takes  up  the  excess  heat  from  the  room  and  is  again 
forced  up  through  the  cooling  tank  by  the  cooler  and  heavier 
brine,  thus  establishing  a  complete  circulation.  The  greater 


REFRIGERATION 


the  difference  between  the  temperature  in  the  cooling  tank  and 
the  temperature  of  the  refrigerator,  the  greater  is  the  velocity 
of  circulation. 

4.  Common  Ice  House.  —  This  is  the  kind  of  ice  house  used 
with  the  ice  bunker  and  with  the  gravity-brine  methods  of  re- 


eoU) 


FIG. 


w///////^^^^ 

14.  —  The  Cooper  gravity  brine  system  and  chloride  of  calcium  process. 


frigeration.  It  is  not  connected  with  the  refrigerator  and  is 
seldom  insulated  to  the  extent  of  the  one  used  in  the  insulated 
ice-house  method.  It  is  often  constructed  from  one  thickness 
of  boards;  and  when  packing  the  ice,  space  is  allowed  for  one 
foot  of  sawdust  to  be  packed  between  the  ice  and  the  wall. 
Some  ice  houses  are  built  with  a  double  wall  insulated  with  from 
8  to  12  inches  of  shavings.  If  the  walls  are  thus  insulated,  it 
is  advisable  to  have  the  floor  also  insulated;  and  for  this  pur- 
pose no  insulation  is  more  satisfactory  than  cinders  and  cork. 


64  MANAGEMENT  OF  DAIRY  PLANTS 

The  ice  should  be  packed  as  already  described,  and  may  be 
covered  with  prairie  hay. 

Estimating  Ice  Storage.  —  In  building  for  ice  storage,  it 
is  necessary  to  determine  the  space  required  which,  in  turn,  is 
dependent  on  the  amount  of  ice  likely  to  be  needed  during  the 
year.  For  these  estimates  there  are  more  or  less  definite  methods 
of  calculation. 

i.  Amount  of  Ice  Required.  —  In  determining  the  amount  of 
ice  to  store,  we  should  consider  the  loss  of  ice  due  to  melting  in 
the  ice  house,  the  loss  of  ice  in  the  refrigerator  due  to  conduction 
of  heat  through  walls,  floor,  ceiling,  etc.,  the  amount  of  ice 
required  for  chilling  the  particular  products  kept  in  the  refriger- 
ator, and  the  amount  of  ice  used  in  the  factory  for  various 
purposes.  In  the  problems  that  follow,  it  is  supposed  that  ice 
will  need  to  be  used  for  refrigeration  only  about  6  months  in  the 
year,  on  the  average. 

A.  Loss  from  Shrinkage  in  Stored  Ice.  —  In  an  ice-storage 
house  without  artificial  refrigeration,  Siebel l  estimated   the 
shrinkage  from  January  to  July  to  be  i/io  pound  of  ice  every 
24  hours  for  every  square  foot  of  wall  surface;  or,  in  round  num- 
bers, from  6  to  10  per  cent  of  the  ice  stored  during  the  6  months 
mentioned.     In  the  average  creamery  ice-storage  house,  the 
shrinking  is  usually  estimated  to  be  nearer  20  per  cent;  and  this 
latter  rate  is  the  factor  used  in  the  following  calculations. 

B.  Loss  from  Imperfect  Insulation  of  Refrigerator.  —  (See 
also  the  general  formula,  p.  62.)    In  refrigerators  constructed 
in  accor  ance  with  Table  I  (p.  63),  the  average  loss  in  refrigera- 
tion per  day  is  3  B.  T.  U.  for  each  square  foot,  for  each  degree 
of  difference  in  temperature  between  the  outside  of  the  refriger- 
ator an    its  inside.    This  average  of  3  B.  T.  U.  may  reasonably 
be  considered  as  the  unit  of  loss  in  24  hours  from  the  average 
creamery  refrigerator.    Consider  that,  in  a  refrigerator  10  feet 
square  by  8  feet  high,  the  temperature  within  the  refrigerator 
is  40°  F.  and  that  outside  of  the  refrigerator  is  70°  F.  —  a  fair 
average  for  the  6  months.    Then  area  of  walls,  floor,  and  ceiling 
is  equal  to  520  square  feet. 

1  Siebel's  Compend.  of  Mechanical  Refrigeration  and  Engineering,  1911,  p.  207. 


REFRIGERATION  6$ 

The  amount  of  ice  melted  due  to  heat  that  is  being  conducted 
through  walls,  floor,  and  ceiling  during  a  period  of  6  months  or 
1 80  days  is  equal  to 

520  X  3(7Q -40)  x  I8p  6 

284,000 

C.  Ice  Required  for  Chilling  Products  Stored.  —  Different 
products  take  up  a  different  amount  of  refrigeration  for  each  de- 
gree that  temperature  is  reduced.  This  depends  on  the  specific 
heat l  of  the  product.  The  specific  heat  of  butter  at  60°  F.  is 
.53  B.  T.  U.; 2  that  of  cream  at  the  same  temperature  is  .84. 
Suppose  the  refrigerator  is  used  for  butter  only,  and  that  600 
pounds  daily  has  to  be  reduced  in  temperature  from  60°  to  40°  F. 
Then 

Daily  heat  removed  from  600  pounds  of  butter  = 

600  X  .53  X  (60  -  40)  =  6,360  B.  T.  U. 

If  the  butter  is  packed  in  tubs  or  boxes,  it  will  furthermore  be 
necessary  to  reduce  the  temperature  of  these  containers  to  the 
same  extent.  Suppose  ash  tubs  of  60  pounds  capacity  are  used, 
that  each  tub  weighs  10  pounds,  and  that  the  specific  heat  of 
wet  ash  wood  be  4.3  Then 

Daily  heat  removed  from  10  tubs  =  100  X  4  B.  T.  U.  X  20 
=  800  B.  T.  U. 

6.360  +  800 

Daily  ice  required  for  cooling  butter  and  tubs  =  — 

142 

=  50.42  pounds. 
Total  ice  required  for  6  months  =  50.42  X   180  =  9,075.6 

9,075. 6 

pounds;  or,  - — -^—  =  4.54  tons. 
2.000 

1  The  specific  heat  of  any  substance  is  the  amount  of  heat,  expressed  in  B.  T.  U., 
which  will  be  absorbed  by  i  pound  of  that  substance  in  raising  its  temperature 
i°  F.;  conversely,  it  is  the  amount  of  heat,  in  B.  T.  U.,  which  will  be  given  off  by 
i  pound  of  that  substance  in  lowering  its  temperature  i°  F. 

2  Research  Bui.  14,  Iowa  Agr.  Expt.  Sta.,  1913 . 

3  Bulletin  no,  U.  S.  Forestry  Bureau,  gives  the  specific  heat  of  dry  white  ash  as 
•327- 


66  MANAGEMENT  OF  DAIRY  PLANTS 

D.  Ice  Used  in  the  Factory.  —  In  a  creamery  where  only 
butter  is  manufactured,  ice  is  used  in  the  factory  only  for  cooling 
the  cream  to  churning  temperature  —  in  this  instance,  supposed 
to  be  50°  F.  Cream  is  usually  cooled  first  with  water  to  about 
65°  F.  If  the  water  is  quite  cool,  it  may  be  used  to  reduce 
cream  temperature  to  60°  F.  or  even  lower. 

In  manufacturing  600  pounds  of  butter  daily,  we  can  estimate 
the  amount  of  cream  handled  daily  to  be  about  1,800  pounds. 
Then 

Daily  ice  required  to  cool  cream  from  65°  F.  to  50°  F.  = 

i,8ooX  .84  X  15 

=  159.71  pounds. 

142 

Total  ice  required  for  6  months  =  159.71  X  180  =  28,747.8 

28,747.8 
pounds;  or,  — -    - —  =  14.37  tons. 

2,000 

In  addition  to  this,  a  further  loss  —  probably  10  per  cent  — 
is  to  be  reckoned  in  for  ice  lost  in  handling,  in  cooling  water 
used  for  circulation,  and  in  absorption  of  heat  from  the  atmos- 
phere. Losses  in  refrigeration  due  to  opening  of  doors  and  to 
heat  given  off  by  persons,  lights,  etc.,  do  undoubtedly  occur; 
but  there  seems  no  way  of  reducing  them  to  definite  calculation. 
It  should  furthermore  be  borne  in  mind  that  ice  is  used  for 
cooling  purposes  during  the  entire  year  and  that  the  creamery 
during  the  winter  months  is  handling  about  50  per  cent  as  much 
product  as  during  the  summer  season.  Therefore 

Total  ice  used  for  cooling  cream  for  i  year 

,   10     .     14.37   X  V- 

=  14.37  X  -  +       ^—         =  23.95  tons. 

Total  amount  of  ice  used  for  the  creamery  during  the  year: 

Loss  due  to  conduction  from  refrigerator 29.66  tons 

Ice  required  for  chilling  the  product 4.54     " 

Ice  required  for  cooling  cream,  etc 23.95     " 


Total , 58.15  tons 


REFRIGERATION  67 

Adding  to  this  the  20  per  cent  loss  of  ice  in  the  ice  house,  we 
arrive  at  the  total  amount  of  ice  that  should  be  stored  for  a 
plant  of  such  size  and  operated  under  such  conditions  as  speci- 
fied. 

58.15  X  ~  =  72-69  tons. 

o 

2.  Space  Required  for  Ice  Storage.  —  The  weight  of  i  cubic 
foot  of  water  at  60°  F.  equals  62.355  pounds;  the  specific  gravity 
of  ice  is  considered  to  be  from  .917  to  .922,  the  average  being 
.92.  Therefore 

Weight  of  i  cubic  foot  of  ice  =  62.355  X  .92  =  57.37  pounds. 

Space  in   cubic  foot    required   to  store    72.7   tons  of  ice 

=  —^ =  2.534  cubic  feet. 

57-37 

In  addition  to  this,  from  10  to  20  per  cent  should  be  allowed 
for  spaces  between  ice-blocks  and  for  sawdust  insulation  in  the 
ice  house. 

An  ice  house  built  in  the  form  of  a  cube  is  most  satisfactory. 
Each  dimension  of  this  cube  of  ice,  with  insulation,  is,  with 

20  per  cent  allowance,  equal  to  ^2,534  X  !£§•  =  J4-5 

To  this  figure  should  be  added  the  amount  of  overhead  space 
required  for  working  purposes. 


CHAPTER  VI 
MECHANICAL  REFRIGERATION 

GENERAL  DISCUSSION 

History  of  Mechanical  Refrigeration.  —  The  mechanical 
system  of  refrigeration  is  of  rather  recent  origin.  In  1834, 
Jacob  Perkins  of  London  invented  an  ice  machine  using  volatile 
liquid.  In  this  machine  ether  was  vaporized  and  expanded 
under  reduced  pressure  maintained  by  the  suction  of  a  pump, 
the  heat  required  for  such  vaporization  being  abstracted  from 
the  substance  to  be  cooled.  The  resulting  vapor  was  com- 
pressed by  the  same  pump  into  a  vessel  cooled  by  water,  where 
it  was  liquified. 

This  machine  contained  all  four  of  the  essential  features 
present  in  all  modern  compression  systems;  namely,  the  evapo- 
rator or  expansion  coil,  the  compressor,  the  condenser,  and  the 
regulating  valve  between  the  condenser  and  the  evaporator. 
Yet  his  system  was  not  generally  adopted,  and  it  was  not  until 
1 86 1  that  an  ice  machine  was  successfully  used  for  commercial 
enterprises. 

Principles  Involved.  —  Mechanical  refrigeration  is  based 
upon  the  fact  that  a  liquid,  when  converted  into  vapor,  ab- 
sorbs heat  from  surrounding  bodies.  Chemicals  which  at 
boiling  point  are  considerably  below  the  temperature  of  the 
surrounding  air,  which  are  reasonably  cheap,  and  which  can  be 
handled  with  the  least  danger  to  life  and  property,  are  therefore 
used  in  the  refrigeration  process.  The  chemical  complying  most 
fully  with  such  requirements  is  ammonia,  and  it  is  the  liquid 
most  frequently  used  for  mechanical  refrigeration.  Other  chem- 
icals, such  as  carbonic  acid  and  sulphuric  dioxide,  are  used  to  a 
limited  extent. 

Ammonia.  — Ammonia  is  used  in  one  of  two  forms,  either  as 


MECHANICAL   REFRIGERATION  69 

"Anhydrous  ammonia"  or  as  "Aqua  ammonia."  The  former 
is  free  from  water  and  exists  in  both  gaseous  and  liquid  form; 
the  latter  is  in  the  form  of  a  solution  of  which  about  29  1/2  per 
cent  is  anhydrous  ammonia.  The  anhydrous  ammonia  is  used 
in  refrigerating  machines  of  the  compression  type;  aqua  am- 
monia is  used  in  refrigerating  machines  of  the  absorption  type. 

Pure  anhydrous  ammonia,  under  ordinary  temperature  and 
atmospheric  pressure,  exists  in  the  form  of  gas  or  vapor;  but 
under  atmospheric  pressure  at  a  temperature  of  — 30°  F.,  it  be- 
comes liquid.  It  will  also  liquefy  at  higher  temperatures  if  the 
pressure  is  sufficiently  increased.  In  its  liquid  form  it  is  color- 
less, has  a  strong  alkaline  reaction,  boils  at  —  29°  F.  under 
atmospheric  pressure,  and  its  latent  heat  of  vaporization  is 
555  B.  T.  U.1  Its  specific  gravity  at  32°  F.  is  o.  6364.  One 
pound  of  this  liquid,  after  being  vaporized  and  the  vapor  raised 
to  32°  F.,  will  occupy  a  space  of  21.017  cubic  feet  under  atmos- 
pheric pressure. 

Ammonia  attacks  copper  and  brass  but  not  iron  or  steel,  and 
this  fact  determines  the  metal  from  which  compression  ma- 
chinery must  be  made.  Ammonia  decomposes  at  900°  F.  if  in 
pure  condition;  but  if  it  contains  impurities,  it  may  decompose 
at  comparatively  low  temperatures.  Ammonia  may  contain 
impurities  which  will  not  influence  its  stability;  but  if  mixed 
with  another  brand  of  ammonia  containing  a  different  kind  of 
impurities  which  alone  would  not  have  any  influence  on  its 
stability,  such  ammonia  may  deteriorate  much  more  readily 
owing  to  the  fact  that  the  impurities  of  one  supplement  the 
impurities  of  the  other  and  cause  decomposition.  This  explains 
the  advisability  of  not  mixing  different  brands  of  ammonia. 

COMPRESSION  SYSTEM 

In  this  type  of  refrigeration,  the  ammonia  operates  in  a 
cycle:  First,  the  liquid  or  inactive  stage;  second,  the  vaporizing 
or  actively  refrigerating  stage,  taking  place  in  the  expansion 

1  The  latent  heat  of  vaporization  for  any  liquid  is  the  total  amount  of  heat,  ex- 
pressed in  B.  T.  U.,  which  is  required  to  change  i  pound  of  that  liquid  at  the  boiling 
point  into  vapor. 


70  MANAGEMENT   OF  DAIRY  PLANTS 

coils;  third,  the  liquefying  stage,  during  which  the  vapor  or  gas 
is  again  reduced  to  its  liquid  form  in  two  successive  steps  — 
compression  and  heat  extraction  or  condensation.    Being  thus 
returned  to  its  original  liquid  form,  the  ammonia  may  be  used 
over  and  over  again  in  successive  cycles  of  refrigerating  activity. 

The  machinery  through  which  this  cycle  operates  is  com- 
posed of  four  principal  parts:  First,  the  expansion  coil;  second, 
the  ammonia  compressor;  third,  the  condenser,  and  fourth,  the 
expansion  or  regulating  valve. 

Expansion  Coil.  —  This  is  that  part  of  the  system  where 
refrigeration  takes  place.  Through  reduction  in  pressure,  the 
liquid  ammonia  is  there  changed  into  a  gas,  thus  absorbing  heat 
from  its  surroundings  and  thereby  effecting  refrigeration. 

This  expansion  coil  may  be  located  directly  in  the  refriger- 
ator and  serve  as  the  refrigerating  coil,  in  which  case  it  is  called 
the  "  Direct  Expansion"  method  of  cooling.  On  the  other 
hand,  the  expansion  coils  may  be  placed  in  a  tank  of  brine 
from  which  the  brine  in  turn  is  circulated  through  refrigerating 
coils  located  in  the  refrigerating  room.  This  indirect  method  of 
cooling  is  known  as  the  "  Brine  Method." 

1.  Direct  Expansion.  —  The  system  of  direct  expansion  is 
adapted  especially  for  rooms  that  are  to  be  cooled  to  an  ex- 
tremely low  degree  of  heat  and  in  places  where  the  machine  is 
operated  constantly.    It  cannot,  therefore,  be  considered  the 
most  ideal  method  for  the  smaller  creamery  or  dairy. 

2.  Brine  Method.  —  This  is  the  system  which  is  most  suitable 
for  the  average  creamery.    The  brine  tank  should  be  located 
in  the  refrigerator  in  a  position  and  with  insulation  similar  to 
that  of  the  ice  bunker  described  under  the  natural  system  of 
refrigeration  (Chapter  V).    The  larger  body  of  brine  retains  a 
more  constant  temperature,  and  in  a  smaller  dairy  the  com- 
pressor may  be  operated  only  for  a  short  time  daily  in  order  to 
reduce  the  temperature  of  the  brine  and  so  maintain  the  neces- 
sary refrigeration. 

The  brine,  when  thus  cooled,  may  be  circulated  by  the  aid  of 
a  pump  through  a  system  of  coils  extending  through  various 
refrigerator  rooms.  This  brine  carries  back  to  the  brine  tank 


72  MANAGEMENT   OF   DAIRY  PLANTS 

the  heat  it  has  removed  from  these  rooms;  here,  in  turn,  this 
heat  is  taken  up  by  the  vaporizing  ammonia  in  the  expansion 
coils.  Ice-cream  freezers  and  cooling  tanks  may  be  connected 
with  the  brine  circulation,  thus  saving  the  handling  of  ice  for 
cooling  purposes  and  its  consequent  loss  from  meltage.  It  may 
not  be  advisable,  however,  to  connect  the  brine  directly  to  the 
cream  ripeners  as  it  is  apt,  in  time,  to  cause  the  cooling  coil  of 
the  cream  vat  to  leak.  The  more  satisfactory  way  is  to  have  a 
separate  cooling  tank  in  which  the  water  used  for  cooling  the 
cream  is  first  cooled  by  the  brine. 

3.  Brine-Tables.  —  The   brine   may   be   made   from    either 
sodium  chloride  or  calcium  chloride.    The  latter  is  most  com- 
monly used,  owing  chiefly  to  the  fact  that  it  does  not  cause  the 
iron  pipes  and  pumps  to  deteriorate  as  does  the  former.    The 
brine  should  be  kept  at  such  a  strength  that  it  will  not  freeze; 
therefore,  if  lower  temperatures  are  desired,  the  brine  should  be 
of   higher   specific   gravity.     For   readily   determining   what 
strength  of  solution  will  give  a  desired  result  under  a  given 
temperature,  tables  have  been  published. 

The  table  on  page  73  is  that  prepared  by  Van  Schaack  & 
Sons  of  Chicago. 

4.  Piping   Required  for   Each   Method.  —  The    amount    of 
piping  required  for  a  refrigerator  room  depends  primarily  on  the 
temperature  to  be  maintained  in  the  room  and  the  temperature 
of  the  refrigerating  medium.     Siebel  estimates  that  for  direct 
expansion  one  running  foot  of  2 -inch  pipe  1  will  take  care  of  10 
cubic  feet  of  space  in  rooms  that  are  kept  below  freezing  to  a 
temperature  of  10°  F.;  that  one  running  foot  of  2-inch  pipe  will 
take  care  of  40  cubic  feet  of  space  in  rooms  to  be  kept  at  or  above 
32°  F.  or  thereabout.    It  is  a  general  rule  in  practice  to  allow 
from  one  and  a  half  to  two  times  as  much  surface  for  brine 
circulation  as  for  direct  expansion. 

Ammonia  Compressor.  —  The  ammonia  compressor  is  a 
machine  which  draws  the  ammonia  gas  from  the  expansion 
coil  into  the  compressor,  whence  it  is  forced  into  the  condenser 

1  The  surface  of  one  running  foot  of  2-inch  pipe  is  equal  to  1.44  feet  of  i^-inch 
pipe,  or  to  1.8  feet  of  i-inch  pipe. 


MECHANICAL   REFRIGERATION 


73 


TABLE  II 
TABLE  OF  HIGH  TEST  CHLORIDE  CALCIUM  SOLUTIONS 


Chlor.  of  Calcium 
to  i  Gallon  of 
Solution 

Degrees 
Baume 
60°  F. 

Salometer 
60°  F. 

Specific 
Gravity 
60°  F. 

Per  Cent 

«f 
Calcium 

Freezing 
Point 
Fahren- 
heit 

— 

i 

4 

1.007 

+3i. 

— 

2 

8 

i  .014 

2. 

+30. 

— 

3 

12 

i  .021 

2. 

+  29. 

— 

4 

16 

1.028 

3-5 

+  28.5 

}/2  pound 

5 

20 

i-035 

4- 

+  28. 

— 

6 

24 

1.043 

5- 

+  27- 

— 

7 

28 

1.051 

6. 

+  25-5 

— 

8 

32 

1.058 

7- 

+  24. 

i 

9 

36 

i.  066 

7-9 

+  23- 

— 

10 

40 

1.074 

9- 

+  22. 

— 

ii 

44 

1.082 

9.8 

+  21. 

— 

12 

48 

1.090 

10.5 

+  20. 

i#       " 

13 

52 

i  .098 

n-5 

+  19- 

— 

14 

56 

i  .  107 

12.5 

+  17- 

— 

15 

60 

1.115 

13-5 

+  14-5 

2 

l6-5 

62 

I  .  122 

15- 

+  12. 

—        • 

17 

64 

I-I33 

15-5 

+  10.5 



18 

68 

I.I42 

16.5 

+  8. 



19 

72 

I.I5I 

17-5 

+  5- 

2^          « 

20 

80 

1.  160 

18.1 

+  2.5 



21 

84 

i  .169 

19.1 

o 



22 

88 

1.179 

20.2 

—  2.5 

3 

23 

92 

1.188 

21-3 

-  5- 

— 

24 

96 

i-i93 

22.3 

—  8. 

— 

25 

100 

1.208 

23.2 

12. 

3^       " 

26 

104 

i.  218 

24.2 

—17- 



27 

108 

i.  229 

25-5 

22. 

4 

29 

116 

i  .  250 

27. 

—32. 

4X        " 

32 

128 

1.283 

29-5 

—54- 

5 

34-.: 

138 

1.307 

32.1 

74 


MANAGEMENT  OF  DAIRY  PLANTS 


Water  Orfc/Z 


fTm  Discharge 

Hi  Valve?—-, 


FIG.  1 6.  —  York  single-acting  ammonia  compressor. 


MECHANICAL   REFRIGERATION 


75 


and  there  condensed  back  to  its  liquid  form.  The  compressor 
takes  care  of  the  first  factor  in  this  liquefaction;  namely,  the 
subjection  of  the  ammonia  gas  to  the  pressure  necessary  for 
liquefaction.  The  condenser  takes  care  of  the  second  factor; 
namely,  the  removal  of 
heat  and  the  resultant 
condensation  to  liquid 
form. 

We  distinguish  be- 
tween two  forms  of  com- 
pressors —  the  "  Single- 
Acting"  and  the 
"Double-Acting."  The 
single-acting  compressor 
is  always  of  vertical  con- 
struction; the  double- 
acting  is  most  commonly 
horizontal,  although  a 
few  of  them  are  of  the 
vertical  type. 

i.  Single- A  ding  Com- 
pressor. —  Fig.  1 6  rep- 
resents the  compressor 
cylinder  of  a  single-act- 
ing compressor.  The 
gas  enters  at  the  bottom 
of  the  cylinder,  passes 
up  through  the  suction 
valve  in  the  piston,  and 
by  the  up  stroke  of  the 
piston  is  compressed  and 
driven  out  through  the 
discharge  valve  in  the 
center  of  the  safety  head.  The  piston  and  the  bottom  of  the 
safety  head,  each  being  faced  off  square  and  coming  in  contact, 
allow  a  complete  discharge  of  the  gas.  The  compressor  of  this 
type  is  incased  in  a  water  jacket.  The  water  keeps  the  com- 


FIG.  17.  —  Vilter  double-acting  ammonia 
compressor. 


?6  MANAGEMENT  OF  DAIRY   PLANTS 

pressor  walls  cool  and  thus  removes  a  portion  of  the  heat  in 
the  ammonia. 

2.  Double- Acting  Compressor.  —  Fig.  17  represents  the  com- 
pressor cylinder  of  a  double-acting  compressor.  This  cylinder  has 
both  a  suction  and  a  discharge  valve  in  each  end  of  the  cylinder, 
and  while  the  gas  is  being  discharged  from  one  end  of  the 
cylinder  the  other  end  is   being  filled  with  gas  at  suction 
pressure. 

3.  Advantages  of  Each  Type  of  Compressor.  —  The  principal 
advantages  and  disadvantages  of  each  type  of  compressor  have 
been  considered  by  F.  Newkirk,1  as  follows: 

"The  single-acting  machine  has  a  simpler  stuffing  box  for  the 
reason  that  it  is  not  subjected  to  high  pressure  as  in  case  of  the 
double-acting  machine.  The  double-acting  machine  has  a  deep 
stuffing  box  which  must  be  kept  very  tight  in  order  to  prevent 
loss  of  ammonia.  This  causes  much  friction  on  the  piston  rod 
and  requires  more  oil.  This,  if  not  properly  separated  from  the 
ammonia  before  same  enters  the  ammonia  condenser,  will  be 
carried  along  to  the  condenser  and  reduce  the  efficiency  of 
same.  In  case  of  the  vertical  machine,  the  piston  does  not  wear 
on  one  side  due  to  its  own  weight;  the  valves  are  more  readily 
adjusted,  so  the  clearance  is  reduced  to  the  minimum.  It  is 
evident  that  the  machine  of  the  least  clearance  is  of  the  greatest 
efficiency. 

"The  double-acting  machine,  if  properly  adjusted,  does 
nearly  as  much  work  in  one  cylinder  as  the  single-acting  does  in 
two  cylinders.  The  machine  is  low  down  and  therefore  more 
convenient  to  look  after,  and  it  has  only  about  half  as  many 
moving  parts  as  has  the  vertical  machine." 

Ammonia  Condenser.  —  This  consists  of  a  series  of  coils 
kept  constantly  cooled  by  water  applied  as  a  bath  or  as  a  trick- 
ling stream.  Into  these  cooled  coils  the  compressed  ammonia 
vapor  is  forced  from  the  compressor,  passing  through  an  inter- 
vening oil  separator.  As  the  ammonia  vapor  passes  through 
these  coils,  the  cold  water  absorbs  the  excess  heat  from  the 
ammonia  and  the  latter  collapses  and  passes  out  of  the  con- 

1  Creamery  Journal,  July  i,  1911. 


o 

£ 


78  MANAGEMENT   OF   DAIRY   PLANTS 

denser  in  liquid  form,  thus  completing  the  second  and  final  step 
in  liquefaction. 

On  its  journey  through  the  system,  the  ammonia  has  risen  in 
temperature  owing  to  heat  acquired  in  two  places  —  the  latent 
heat  of  vaporization  taken  up  in  the  expansion  coils,  and  the 
heat  of  compression  that  represents  work  done  on  the  ammonia 
by  the  compressor.  Some  of  this  total  acquired  heat  is  absorbed 
by  the  water  jacket  of  the  compressor;  the  remainder  passes 
into  the  condenser  and  is  there  removed  by  the  cold  water. 

The  temperature  of  the  gas  is,  therefore,  higher  in  the  com- 
pressor and  condenser  coils  than  in  the  expansion  coils.  But 
there  is  a  definite  relation  between  the  pressure  of  the  gas  and 
its  temperature.  At  a  pressure  of  15  pounds,  the  ammonia  gas 
has  a  temperature  of  o°  F.,  while  at  a  pressure  of  150  pounds  it 
has  a  temperature  of  80°  F.  Consequently,  a  great  disparity 
between  the  temperature  in  the  condenser  coils  and  that  in 
the  expansion  coils  means  a  corresponding  disparity  between 
the  high  pressure  in  the  condenser  coils  and  the  low  pressure 
(or  back  pressure)  in  the  expansion  coils.  The  less  this  dis- 
parity, the  more  efficient  is  the  working  of  the  machine.  Con- 
sequently, the  low  or  back  pressure  should  be  reasonably  high, 
since  the  capacity  of  the  machine  is  governed  by  the  density  of 
the  gas.  The  high  or  condenser  pressure  should  be  as  low  as 
possible,  since  it  requires  less  power  to  pump  against  a  low 
pressure,  and  since  the  temperature  of  compression  is  decreased 
with  decreasing  pressure.  As  the  temperature  of  the  water  used 
for  cooling  determines  the  pressure  of  the  gas,  the  water  used 
for  that  purpose  on  compressor  and  condenser  coils  should  be  as 
cold  as  it  can  be  had. 

The  most  common  styles  of  condenser  are  the  atmospheric 
ammonia  condenser  and  the  double-pipe  ammonia  condenser. 
The  former  is  more  economical  and  is  usually  placed  on  the  roof. 
The  latter  is  used  mostly  where  the  condenser  is  placed  inside. 

Expansion  Valve.  —  The  expansion  or  regulating  valve  is 
the  valve  between  the  receiver  and  the  expansion  coil.  When 
this  valve  is  opened  the  liquid  escapes  into  the  expansion  coil, 
and  thus  the  cycle  is  completed. 


oJ 

a 

•a 


I 

< 

I 


8o  MANAGEMENT   OF   DAIRY  PLANTS 

Size  of  Machinery  Required.  —  In  determining  the  size  of 
machinery  needed,  an  estimate  should  be  made  of  the  heat 
units  to  be  removed  during  a  period  of  24  hours.  To  this  result 
should  be  added  at  least  20  per  cent  for  clearance  l  and  other 
losses.  The  size  of  a  compressor  is  usually  designated  in  tons  of 
refrigeration  per  24  hours,  basing  it  on  the  heat  units  required 
for  melting  one  ton  of  ice  from  32°  F.  to  water  of  the  same  tem- 
perature. A  4- ton  compressor  has,  therefore,  the  capacity  of 
removing  2,000  X  142  X  4  =  1,136,000  B.  T.  U.  of  heat  in  24 
hours.-  If  this  amount  of  work  is  to  be  accomplished  in  one- 
fourth  the  time,  a  machine  of  four  times  that  capacity  will  be 
required. 

Cost  of  Producing  Refrigeration  by  Compression.  —  The 
relative  amount  of  power  required  for  operating  an  ammonia 
compressor  differs  inversely  with  the  size  of  the  compressor. 
Thus,  a  compressor  of  10  tons  capacity  or  less  usually  requires 
two  horse  power  or  more  per  ton  of  refrigeration.  A  larger 
machine  will  require  proportionately  less;  while  for  large  com- 
pressors, the  power  required  may  be  reduced  to  about  one 
horse  power  per  ton  of  refrigeration.  It  is  safe,  however,  to 
figure  on  the  size  of  the  engine  being  one  and  a  fourth  times  as 
great  as  the  theoretical  power  required  to  propel  the  compressor. 
Bowen  2  estimates  the  amount  of  steam  consumed  by  the  com- 
mon creamery  engine  as  40  pounds  per  horse  power  per  hour. 
If  a  6-ton  compressor  is  operated  for  24  hours,  and  if  it  requires 
a  I5-H.  P.  engine  for  operating,  and  if  each  pound  of  coal  pro- 
duces 6  pounds  of  steam,  then 

Amount  of  coal  consumed  in  operating  compressor  24  hours 

40  X  24  X  15 

=  =  2,400  pounds. 

6 

Figuring  coal  at  $5  per  ton,  the  cost  for  coal  per  ton  of  refriger- 
ation will  amount  to  one  dollar.  In  addition,  there  should  be 
added  the  cost  of  water  used  for  boiler  and  for  the  ammonia 
condenser,  the  cost  of  labor,  of  oil,  waste,  etc.  The  amount  of 
water  required  for  the  ammonia  condenser  will  amount  to  about 

1  Clearance  is  the  dead  space  between  the  piston  and  the  cylinder  head. 

2  U.  S.  Bureau  Animal  Industry,  Circular  209,  1913. 


MECHANICAL   REFRIGERATION  8 1 

i  1/2  gallons  at  60°  F.  per  minute  per  ton  of  refrigeration.  The 
amount  of  ammonia  used  should  not  exceed  one  twentieth  of  a 
pound  per  ton  of  ice  manufactured  in  an  economically  operated 
plant. 

Cost  of  Making  Ice.  —  The  cost  per  ton  for  manufacturing 
ice  is  nearly  double  that  for  refrigeration  per  ton.  This  is  due 
to  the  fact  that,  in  ice  making,  the  water  must  first  be  cooled  to 
freezing  point,  and,  after  being  frozen,  the  ice  must  be  cooled 
still  lower  until  it  reaches  the  temperature  of  the  surrounding 
brine. 

It  is  often  claimed  that  natural  ice  will  yield  a  greater  amount 
of  refrigeration  than  artificial  ice.  There  should  be  absolutely 
no  difference  if  both  are  properly  frozen.  In  artificial  ice  made 
from  raw  water,  the  cake  of  ice  often  has  a  reddish  or,  in  some 
cases,  a  milky  or  cloudy  core  through  the  center.  The  former 
is  due  to  iron;  the  latter  is  due  to  carbonates  and  sulphates  of 
calcium  and  magnesia.  The  discoloration  may  be  overcome  to 
some  extent  by  agitating  the  water  with  air  during  the  freezing 
process. 

ABSORPTION  SYSTEM 

General  Principles.  —  This  system  of  refrigeration  is  based 
on  the  fact  that  water  has  the  power  of  absorbing  various 
vapors  having  a  low  boiling  point,  and  that  such  vapors  are 
again  readily  separated  from  the  water  by  heating  the  liquid. 

In  reality,  there  is  much  similarity  between  the  compression 
system  and  the  absorption  system.  Common  to  both  are  the 
condenser  and  the  expansion  coils,  including  the  brine  tank  and 
the  entire  circulating  system.  In  the  absorption  system  there 
is  a  pump,  but  no  compressor.  The  generator,  the  ammonia 
receiver,  and  the  absorber  are  also  important  parts.  In  addi- 
tion, we  have  the  analyzer,  the  exchanger,  the  dehydrator,  and 
other  parts  of  less  importance  which  are  added  primarily  to 
make  the  system  more  complete  in  its  operation. 

Operation.  —  This  system  may  be  operated  without  any 
great  amount  of  steam,  the  only  steam  required  being  that  used 
for  the  pump  and  the  exhaust  steam  for  the  generator. 


MECHANICAL  REFRIGERATION  83 

The  strong-aqua  tank  is  charged  with  aqua  ammonia  con- 
taining 29  1/2  per  cent  of  anhydrous  ammonia.  The  ammonia  is 
pumped  from  the  strong-ammonia  tank  to  the  generator,  where 
it  is  heated  and  the  anhydrous  ammonia  distilled  off.  This 
ammonia  gas  enters  the  condenser  where  it  is  condensed,  and 
from  there  it  enters  the  ammonia  receiver  as  liquid  ammonia. 
From  the  receiver,  the  ammonia  is  admitted  through  the  ex- 
pansion valve  to  the  brine  cooler,  where  it  is  again  converted 
into  a  gas,  taking  up  heat  from  the  brine.  From  the  brine 
cooler,  the  gas  enters  the  absorber  to  be  reabsorbed  by  the 
water.  The  absorber  and  the  generator  are  so  connected  that 
the  water  in  the  generator,  from  which  the  anhydrous  ammonia 
has  been  distilled,  is  again  transferred  to  the  absorber  and 
thus  the  cycle  is  completed. 

The  absorption  system  has  not  been  adopted  so  generally  as 
the  compression  system,  and  is  used  for  plants  of  large  capacity 
only.  Plants  of  less  than  10  tons'  capacity  have  not  been  con- 
structed on  the  absorption  system. 


CHAPTER  VII 

LABOR 
ORGANIZING  A  STRONG  WORKING  FORCE 

THE  organization  of  a  strong  working  force  is  most  readily 
accomplished  by  employing  capable  men,  mentally  as  well  as 
physically,  by  properly  training  and  educating  the  employees, 
and  by  creating  loyalty  among  them. 

Hiring  the  Employees.  —  When  employing  men,  employ 
such  as  will  eventually  work  up  to  more  responsible  positions. 
The  employee  who  is  not  seeking  additional  responsibility  will 
never  prove  satisfactory  in  any  position.  The  man  who  is  in 
demand  is  the  one  who  has  capacity  for  work,  who  will  not 
shirk  details,  who  is  anxious  to  learn,  and  who  is  of  a  strong 
moral  character. 

To  secure  better  information  about  men  who  may  be  hired, 
some  business  houses,  and  among  them  creameries,  submit  to 
each  applicant  a  blank  to  be  filled  out  by  himself.  Form  I  repre- 
sents a  blank  for  that  purpose  used  by  an  Iowa  creamery. 
Form  II  represents  a  blank  that  is  mailed  to  the  reference 
furnished  by  the  applicant.  This  application  blank,  together 
with  the  references,  is  filed  for  future  reference,  usually  under 
the  head  of  the  department  in  which  employment  is  sought. 
Under  the  department  they  are  filed  alphabetically  according 
to  the  names  of  the  applicants.  It  is  convenient  to  have  a 
sheet  in  front  of  each  department  file  on  which  is  listed  the 
names  of  the  applicants  appearing  to  be  most  capable. 

i.  Employment  of  Personal  Friends  and  Relatives.  —  Employ- 
ment of  personal  friends  and  relatives  may  have  some  advan- 
tages, but  has  many  more  disadvantages.  Employees  con- 
nected with  the  management  by  friendship  or  family  ties  often 
create  a  feeling  of  dissatisfaction  among  the  other  employees. 

84 


LABOR  85 

FORM   I 


Ajtyltatum  far  $faBttfam  as 


FuU  Name..., _ -„ 

Post  Ofice 

State.. 

Phone  or  Wire  Addrea 

Age Single  or  Married 

NationaEty ,,; 

How  many  yean  experience  as  Buttermaker ........ .v. 

What  Systems  (Whole  Milk  01  Gathered  Cream) 

By  Whom  Employed , 


Slate  How  Long  at  Each  Place  . 


State  what  Separators  yog  have  run , 

Have  you  used  Combined  Churns , State  what  kind  . 

Do  you  thoroughly  understand  Babcock"  Te«ting  of  Milk  and  Cream  . . 

Do  you  understand  Pasteurizing ^.. What  Pasteurizer 

Hive  you  operated  Starter  Cans ......State  what  kind 

Have  you  operated  Cream  Ripeners State  what  kind 

Can  you  run  Refrigerating  Apparatus , 

What  Salary  do  you  command .^ 

Do  you  use  Intoxicating  Liquors 

Have  you  ever  been  Discharged Give  Reasons..., ..    . 

Can  you  Respond  to  Immediate  Call-. 

Can  you  keep  all  Books  for  Creamery  if  necessary 

REFERENCES: 


86 


MANAGEMENT   OF   DAIRY  PLANTS 


FORM    II 


......   who  gives  his  age  as 


We  have  received  from  Mr • 

application  for  position  as 

He  refers  us  to  you,  stating  that  he  was  in  your  employ  as 

*  from ; to 

Would  be  obliged  if  you  would  furnish  the  information  called  for  below  regarding  his  record  while  with 
you.    We  will  consider  your  reply  as  absolutely  confidential  and  if  occasion  affords  will  be  glad  to  reciprocate. 

Yours  truly, 




QUESTIONS 

ANSWERS 

1. 

Is   tho  applicant  well-known   to  you.   and   how   long   hav«   you 
known  him? 

2. 

An  you  connected  with  him  by  relationship,  or  otherwise;  If  so. 
In  what  way? 

3. 

A.    Is  he.  or  has  he  ft  any  time  been  addicted  to  the  use  ot  liquor, 
or  given  to  gambling.  Immorality  or  other  bad  habits? 
B.    If  so.  please  state  what  they  are  and  to  what  extent? 

* 

4. 

Has  he  ever  been  suspected  ot  fraud,  dishonesty  or  dishonorable 
conduct? 

5. 

Has  bis  general  conduct  be«n  such  as  to  entitle  him  to  the  con- 
fidence of  bis  employers? 

6. 

Is  he  engaged  or  interested  la  any  business  or  undertaking  at 
present? 

7 

Has  he  ever  failed  In  business;  If  so,  please  give  circumstance 
and  terms  of  settlement? 

i 

If  ever  in  your  service,  on  what  date  did  be  enter  and  leave  your 
employ? 

Entered                                                   Left 

». 

What  position  did  be  fill? 

10. 

For  what  cause  did  he  finally  leave  your  employ  T 

11. 

A.    While  in  your  employ  did  he  bare  the  custody  of  moneys? 

A, 
B. 

12. 

A.    Were  his  services  satisfactory? 
B.    Have  you  reason  to  consider  him.  competent  to  fill  the  posi- 
tion he  Is  applicant  for? 

B. 

11 

How  long  and  by  whom  was  he  employed  prior  to  his  service 
with  you? 

14. 

Was  he  ever  dismissed  or  suspended  from  any  employment?    If 
•o.  why? 

15 

How  or  by  «hom  was  he  employed  after  leaving  your  service? 

Signature                                              Du 

Mfta  M  took  •»  MS  *•*. 

Date  ... 

...Address   .. 

LABOR  87 

The  foreman  or  the  superintendent  is  at  times,  even  without 
realizing  it,  inclined  to  favor  such  employees  more  than  their 
fellow  workers  and  unless  they  are  of  exceptionally  strong 
character  they  will  often  believe  that  they  can  get  along  by 
doing  less  work  and  perhaps  even  work  of  poorer  quality  and 
are  tempted  to  take  advantage  of  this  circumstance.  At  some 
cooperative  creameries  it  is  customary  to  employ  personal 
friends  or  relatives  of  the  directors,  but  it  is  often  found  that 
such  employees  return  less  in  labor  than  they  are  paid 
for. 

Training  and  Educating  the  Employees.  —  The  superin- 
tendent or  other  person  in  charge  of  subordinate  employees 
should  take  an  interest  in  them  and  in  the  way  they  perform 
their  work.  If  the  employees  do  various  kinds  of  work  during 
the  day,  then  it  is  beneficial  to  have  each  keep  a  systematic 
record  of  his  day's  work.  To  illustrate,  a  young  man  who 
started  as  a  helper  in  a  small  creamery  made  a  written  outline 
of  his  day's  work,  even  to  the  extent  of  marking  the  time  he 
took  to  perform  his  various  duties.  Thus  his  attention  was 
daily  called  to  the  quantity  as  well  as  to  the  quality  of  his  own 
work,  and  as  a  result  he  made  rapid  advances. 

i.  Encouraging  Originality. — The  management  should  en- 
courage originality  among  its  employees.  Wherever  the  leader 
of  an  establishment  has  developed  his  own  originality  and  that 
of  the  employees  he  often  finds  this  to  be  a  source  of  great 
income  to  the  employers.  In  order  to  promote  originality  the 
employer  should  reimburse  his  employees  for  new  ideas  and 
inventions  in  proportion  to  the  value  thereof  to  the  firm. 
Some  large  industrial  concerns  are  offering  valuable  premiums 
for  useful  ideas  and  inventions  made  by  the  employees.  Such 
inventions  are  usually  along  the  particular  line  of  work  in 
which  the  employee  is  engaged.  The  same  policy  along  similar 
lines  is  being  adopted  by  manufacturers  of  dairy  products.  It 
is  deserving  of  even  wider  adoption,  for  it  gives  added  pleasure 
and  dignity  to  labor  and  it  stimulates  the  employee  to  more 
effective  work  because  he  likes  to  work  and  not  because  he  has 
to.  Originality  is  very  important  to  consider  in  the  organi- 


88  MANAGEMENT   OF  DAIRY  PLANTS 

zation  of  a  working  force;  it  is  often  this  originality  which 
determines  the  success  or  failure  of  an  enterprise. 

2.  The  Factory  School.  —  The  factory  school  has  come  into 
existence  during  recent  years.  To  our  knowledge  the  first 
school  of  that  kind  was  established  by  a  large  corporation  of 
Dayton,  Ohio,  in  1892.  This  company  was  organized  in  1884. 
Its  business  increased  from  year  to  year,  but  it  found  its  organ- 
ization to  be  weak;  its  employees  had  no  heart  in  their  work. 
The  management  conceived  the  idea  of  establishing  a  factory 
school  to  teach  the  employees  about  the  business  and  to  interest 
and  encourage  them.  The  first  school  met  in  an  old  church 
which  the  company  purchased  and  had  fitted  up  as  a  lecture 
hall.  The  lectures  were  illustrated  with  pictures,  a  plan  which 
has  been  continued  in  the  company's  schools  ever  since.  On 
July  8,  1912,  the  company  reported  that  it  had  for  educational 
use  over  30,000  stereoptican  slides  and  over  150,000  feet  of 
motion-picture  film  covering  a  variey  of  subjects.  The  school 
long  ago  was  removed  from  the  old  church  building  to  a  new 
school  hall  erected  at  a  cost  of  over  $150,000  and  with  a 
seating  capacity  of  800.  This  school  is  now  divided  into 
about  twenty  separate  divisions.  The  company  considers  that  , 
this  school  is  responsible  in  a  great  measure  for  its  remarkable 
growth. 

The  first  creamery  schoolroom  built  in  connection  with  a 
private  creamery  was  that  of  a  large  creamery  of  Omaha.  It 
was  completed  in  1911.  In  this  room  the  superintendent, 
manager,  and  directors  meet  with  the  employees  to  discuss 
value  of  system,  methods  of  systematizing  the  work,  etc.  Here 
the  employees  begin  to  learn  the  value  of  thinking  for  them- 
selves and  to  express  their  ideas  in  language  understood  by 
others. 

Each  subject  taken  up  in  a  factory  classroom  before  a  group 
of  employees  should  be  most  exhaustively  discussed  by  the 
employees  as  well  as  by  their  employers  and  supervisors  so  that 
before  the  discussion  closes  the  subject  is  fully  understood  by 
all.  When  all  have  a  clear  understanding  of  the  work  in  general 
there  will  be  more  harmony  and  better  work  will  be  done  by 


LABOR  89 

the  individual  employees.  Meeting  of  employees  for  educa- 
tional purposes  should  be  held  weekly.  Other  meetings  may  be 
held,  such  as  for  the  education  of  the  superintendents,  salesmen, 
etc. 

It  may  be  argued  that  such  subjects  as  market  requirements 
and  the  science  of  butter  making  and  ice  cream  making  should 
not  be  given  as  a  general  course  of  instruction  to  employees.  It 
has  been  found,  however,  that  lectures  of  that  nature  are  of 
interest  to  the  entire  organization  and  particularly  to  the 
manufacturing  department,  for  it  is  very  important  that  the 
butter  maker  should  know  about  the  demands  of  the  buyers;  if 
he  has  this  knowledge  he  will  be  better  able  to  satisfy  their 
demands. 

3.  Creating  Loyalty  among  the  Employees. — The  employer 
who  is  taking  an  active  interest  in  the  welfare  of  his  employees 
will  invariably  succeed  in  gaining  their  confidence  and  loyalty. 
It  is  to  the  advantage  of  the  business  concern  to  have  the  em- 
ployees feel  keenly  that  they  are  part  of  the  organization.  It 
is  also  important  that  there  should  exist  the  very  best  feeling 
among  the  employees  so  that  the  work  of  the  different  depart- 
ments may  be  carried  on  harmoniously.  Social  gatherings, 
picnics,  and  entertainments  of  various  kinds  are  becoming  more 
customary  as  factory  functions.  The  employees  thus  become 
better  acquainted  and  warmer  friends,  and  they  become  more 
loyal  to  the  company  by  which  they  are  employed. 

Organization  of  the  Working  Force.  —  It  is  not  necessary 
to  consider  the  labor  organization  of  a  small  factory  where  the 
secretary  and  the  butter  maker  do  all  the  work,  nor  of  a  plant 
which  hires  from  one  to  three  helpers.  In  both  cases  a  man  of 
ordinary  intelligence  can  readily  organize  such  a  small  force 
so  that  it  will  render  the  greatest  amount  of  service. 

i.  Division  of  Responsibility.  —  But  as  the  creamery  industry 
becomes  more  centralized,  the  factories  become  larger  and  the 
organization  of  labor  becomes  a  more  complex  problem.  This 
may  be  seen  by  a  glance  at  the  following  chart  which  illustrates 
the  more  common  form  of  organization  of  labor  in  a  large  plant 
for  the  manufacture  of  butter  and  ice  cream. 


9o 


MANAGEMENT   OF   DAIRY   PLANTS 


Directors 

General 
manager 


Superintendent  of 
manufacturing 


Butter  maker 


Ice  cream  maker  • 


Chemist 


Superintendent  of  shipping  and  re- 
ceiving 


Superintendent  of  field  department 


Superintendent  of  sales  department 


Purchasing  agent 


Auditor 


Asst.  butter  makers 
Cream  receiving  dept. 
Helpers 

Asst.  ice  cream  makers 
Helpers 

Testers 
Helpers 

Shipping  clerk 
Receiving  clerk 
Order  clerk 
Drivers 
Barn  employees 

Traveling  solicitors 
Station  operators 
Route  drivers 

Traveling  salesmen 
City  salesmen 
Sales  correspondents 


Bookkeepers 

Cashier 

Collectors 

Pay  roll  clerks 

Clerks  on  cost  records 


The  general  manager  is  held  responsible  to  the  directors  and 
the  superintendents  are  held  responsible  to  the  general  manager 
for  their  respective  departments.  The  superintendent  of  the 
manufacturing  department  will  in  turn  hold  the  butter  maker 
and  ice  cream  maker  responsible  for  their  respective  divisions. 
The  object  is  to  hold  each  individual  employee  responsible  for 
the  performance  of  a  certain  task.  The  organization  thereby 
becomes  so  permanent  that  even  if  the  manager  or  superintend- 


LABOR 

ent  is  absent  the  work  in  the  departments  \ 
with  the  same  degree  of  accuracy  as  if  he  were  prv,. 

The  superintendent  should  maintain  this  perfection 
ganization  and  outline  the  work  for  his  subordinates,  fi^ 
should  always  know  the  details  of  the  work  allotted  to 
each  individual  employee  in  his  department  and  the  length 
of  time  required  for  each  one  to  complete  his  particular 
task. 

The  superintendents  should  hire  the  employees  for  the 
respective  departments.  Some  managers  prefer  to  hire  the  em- 
ployees themselves.  The  objection  to  that  system  is  that  under 
it  the  superintendent  will  not  be  held  in  as  high  esteem  and 
respect  by  his  subordinates  and  his  work  may  therefore  suffer 
in  efficiency.  The  manager  naturally  hires  the  superintendents, 
but  he  should  give  them  full  authority  to  hire  the  men  for  their 
respective  departments.  However,  if  the  superintendent  is  a 
man  of  diplomacy  and  unselfishness,  he  will  consult  the  manager 
in  reference  to  the  man  he  is  about  to  employ,  as  to  qualifica- 
tion, salary,  etc.  The  superintendent  of  the  manufacturing 
department  should  likewise  consult  the  butter  maker  or  the  ice 
cream  maker,  for  he  should  not  place  a  man  in  their  divisions 
in  whom  they  have  no  confidence. 

The  directors  should  keep  in  touch  with  their  employees  and 
preferably  call  them  by  their  given  names.  Their  position 
toward  the  employees  is  not  that  of  giving  orders  but  more 
that  of  educators,  as  orders  are  best  given  by  the  immediate 
superior  of  an  employee.  As  educators,  they  will  exercise 
greater  influence  over  their  employees  and  they  will  build  a 
stronger  organization. 

Surety  Bond  for  Employees.  —  An  employee  holding  a  re- 
sponsible position  in  charge  of  money  or  valuable  property 
should  give  to  his  company  a  surety  bond  to  the  amount  deter- 
mined by  the  directors  of  the  company;  by  this  the  employer  is 
insured  against  loss  due  to  fraud  or  dishonesty  of  the  employee. 
Such  a  bond  should  be  purchased  through  one  of  the  leading 
surety  companies  and  usually  the  employer  pays  the  annual 
premium. 


CEMENT   OF   DAIRY   PLANTS 

PAYING  FOR  LABOR 

-  .ive  and  Nonproductive  Labor.  —  Productive  labor 
.„  active  manufacturing  labor.  In  the  creamery  and  ice 
cream  factory  such  labor  is  produced  by  the  butter  maker, 
ice  cream  maker,  and  their  subordinates  and  is  charged 
directly  against  the  department  in  which  they  labor.  The 
superintendent  of  the  manufacturing  department  will  be  con- 
sidered under  productive  labor  if  he  himself  is  engaged  in  the 
work  of  manufacturing;  if  he  is  merely  supervising 'the  work  in 
the  manufacturing  department  then  his  time  will  be  considered 
under  the  head  of  nonproductive  labor.  Nonproductive  labor 
includes  the  labor  of  clerks,  bookkeepers,  superintendents,  etc. 
It  is  noncreative  labor,  but  it  is  required  for  making  the  organi- 
zation more  efficient.  Such  labor  may  be  charged  directly 
against  a  definite  department  for  such  as  are  working  for  that 
department  exclusively,  but  usually  the  employees  engaged  in 
nonproductive  labor  are  working  for  more  than  one  department 
and  their  wages  must  therefore  be  proportioned  among  the 
various  departments.  Such  labor  is  often  known  as  indirect 
labor. 

Payment  for  labor  may  be  according  to  one  of  several  sys- 
tems; the  day- wage  system,  the  piecework  system,  and  the 
premium  system. 

The  Day- Wage  System.  —  This  system  provides  for  a  def- 
inite compensation  per  unit  of  time.  It  is  the  oldest  of  the 
three  systems  mentioned,  yet  it  has  few  advantages  to  its  credit. 
The  employees,  as  a  rule,  are  more  particular  and  careful  when 
hired  for  day  wages,  as  they  are  not  so  tempted  to  sacrifice 
quality  of  work  for  speed.  The  disadvantages  are  mainly  that 
the  employer  must  depend  on  the  integrity  and  skill  of  the 
individual  workman  and  for  that  reason  the  standard  of  effi- 
ciency for  each  employee  is  different  and  the  manufacturer  has 
no  fixed  rate  of  cost  per  unit  of  labor.  By  making  a  difference 
in  the  rate  of  wages  between  employees  doing  the  same  kind  of 
work  dissatisfaction  is  created  among  the  employees.  This 
system  is  entirely  satisfactory  where  each  employee  has  a  def- 


LABOR  93 

inite  amount  of  work  outlined  for  the  day  and  is  responsible  for 
the  completion  of  such  work. 

The  Piecework  System.  —  This  system  provides  for  a  defi- 
nite compensation  per  unit  of  labor.  The  manufacturer  has  the 
advantage  that  he  has  a  fixed  rate  of  cost  for  labor  and  that 
the  same  amount  of  work  will  be  accomplished  in  less  time 
and  therefore  save  in  factory  cost.  The  piecework  system  will 
invariably  decrease  the  cost  of  labor  per  unit.  The  only  disad- 
vantage to  the  manufacturer  is  that  the  employees  are  more 
tempted  to  sacrifice  quality  for  speed. 

To  the  employee  this  system  appeals  more  strongly  than 
the  day- wage  system.  The  industrious  and  skilled  laborer  re- 
ceives his  advance  over  the  less  ambitious  and  inexperienced. 
Under  this  system  the  employees  feel  greater  freedom  and  inde- 
pendence, which  tend  to  create  satisfaction. 

In  deciding  on  a  piece  rate  great  caution  is  necessary,  for 
if  the  rate  is  too  high  and  it  is  found  necessary  to  reduce  it 
later  dissatisfaction  will  always  result  among  the  employees. 
A  rate  should  not  be  fixed  before  the  matter  has  been  thoroughly 
studied  through  a  series  of  experiments. 

The  Premium  and  Percentage  System.  —  This  system  pro- 
vides for  the  payment  of  the  entire  salary  or  a  part  thereof  on 
some  premium  or  percentage  basis.  It  is  customary  in  some 
creameries  to  pay  the  butter  maker  a  comparatively  small 
monthly  wage  and  a  certain  per  cent  of  the  profit  which  will  be 
turned  over  to  him  annually  or  semiannually.  When  such  agree- 
ments are  made  with  the  butter  maker  the  basis  of  paying  for 
butter  fat  should  be  fully  understood  and  should  be  regulated  by 
the  butter  quotations  of  one  of  the  leading  butter  markets.  If 
the  butter  maker  is  also  responsible  for  the  soliciting  of  cream 
patrons,  then  he  may  be  allowed  a  certain  per  cent  on  business 
from  new  customers  or  on  business  increase,  or  he  may  receive  a 
definite  fraction  of  a  cent  per  pound  of  butter  manufactured. 
He  may  also  receive  a  premium  for  quality.  The  percentage 
system  may  be  applied  to  all  of  the  employees.  A  definite  por- 
tion of  the  annual  profits  might  be  set  aside  to  be  divided  among 
the  employees  in  proportion  to  their  earning  capacity.  The 


94  MANAGEMENT   OF   DAIRY   PLANTS 

monthly  wages  are  usually  so  adjusted  that  it  would  be  fair  to 
use  them  as  a  basis  for  dividing  the  earnings  belonging  to  the 
employees. 

Such  work  as  butter  wrapping  usually  comes  under  the  head 
of  piecework,  but  in  connection  therewith  the  premium  system 
may  be  adopted  to  advantage  by  paying  a  certain  rate  for  the 
first  thousand  pounds,  a  slight  increase  for  the  second  thousand, 
still  another  increase  for  the  third  thousand,  etc.  By  this 
method  the  employees  should  produce  still  greater  results  than 
by  a  regular  piecework  system. 

Haulers  are  successfully  employed  on  the  percentage  system. 
Any  increase  in  salary  may  be  based  on  the  accuracy  of  their 
work  regarding  weighing  and  sampling;  it  may  be  based  on  an 
increase  in  the  amount  of  butter  fat  received  on  a  route  over 
the  previous  year,  or  it  may  be  paid  on  butter  fat  received  from 
new  customers,  or  finally,  it  may  be  paid  on  the  quality  of 
cream  delivered  by  the  driver,  which  encourages  the  hauler  to 
care  properly  for  the  cream  while  on  the  road  and  to  instruct 
properly  the  patrons  in  the  matter  of  care  of  cream  on  the  farm. 

The  premium  and  percentage  method,  if  properly  managed, 
should  prove  a  big  success.  It  makes  the  employee  feel  as  if  he 
had  a  financial  interest  in  the  business  and  as  a  rule  the  com- 
pany receives  from  such  an  employee  the  best  service  he  is  able 
to  render. 

Prompt  Pay.  —  The  employees  are  usually  in  need  of  the 
money  as  soon  as  it  has  been  earned  and  if  they  are  paid 
promptly  it  creates  a  better  feeling  toward  the  employer  which 
means  better  work  and  a  financial  gain  to  the  company.  If  the 
employees  are  paid  monthly  they  should  receive  their  wages 
not  later  than  on  the  first  day  of  the  following  month.  It  is 
more  satisfactory  to  pay  all  employees  at  the  close  of  each  week. 
Some  business  concerns  are  paying  their  employees  on  the 
tenth,  fifteenth,  or  twentieth  of  each  month  for  work  done 
during  the  previous  month.  Such  a  method  of  withholding  the 
employees'  money  can  scarcely  be  considered  businesslike  and 
there  is  no  good  reason  therefor,  as  in  a  well-managed  business 
establishment  the  employees'  pay  roll  is  completed  at  the  close 


LABOR 


95 


of  the  month.  Therefore  when  such  a  system  is  employed  it 
either  shows  poor  management  or  that  the  company  is  with- 
holding the  employees'  money  for  the  sake  of  making  use  there- 
for in  their  business,  which  can  hardly  be  considered  legitimate. 

Time  Keeping.  —  In  creameries  it  is  perhaps  most  satis- 
factory for  the  superintendent  to  keep  a  card  for  each  employee 
working  as  a  day  laborer.  The  time  clock  is  used  in  some  of  the 
larger  creameries,  but  it  is  more  satisfactory  if  such  a  feeling 
can  be  created  among  the  employees  that  the  time  clock  will  be 
unnecessary.  The  time  clock,  regardless  of  how  useful  it  is, 
may  impress  the  employees  as  being  an  indication  of  mistrust 
and  as  a  result  may  destroy  loyalty  on  the  part  of  the  em- 
ployee. 

Reducing  the  Cost  of  Labor.  —  It  is  not  so  important  how 
much  per  day  or  month  a  man  is  paid,  but  his  labor  cost  per  unit 
and  the  quality  of  the  work  he  produces  are  of  utmost  impor- 
tance. One  butter  maker  is  easily  worth  $25  or  $50  per  month 
more  than  another,  but  the  manager  will  not  know  the  difference 
unless  he  keeps  a  record  of  the  labor  cost  per  unit  and  of  the  dif- 
ference in  quality  of  goods  produced  by  the  two  butter  makers. 

i .  Reducing  Cost  of  Productive  Labor.  —  In  a  well-managed 
creamery  the  productive  labor  will  not  stand  much  reduction. 
The  careful  superintendent  adjusts  as  nearly  as  possible  the 
amount  of  labor  to  the  amount  of  goods  manufactured.  It  is 
quite  essential  that  the  superintendent  keep  a  record  of  the 
wages  paid  by  his  department,  figuring  therefrom  the  cost  per 
unit  manufactured. 

FORM  III 

CREAMERY  PRODUCTIVE  LABOR  COST  RECORD  —  BUTTER  DEPARTMENT 


Lbs. 

Cost 

Date 

Regular 

Extra 

Total 

butter 

per  Ib. 

Remarks 

employees 

employees 

cost 

mfg. 

butter 

g6  MANAGEMENT   OF   DAIRY   PLANTS 

The  information  furnished  by  Form  III  keeps  the  super- 
intendent properly  informed  daily.  When  the  labor  cost  per 
pound  of  butter  increases  he  will  make  an  effort  to  dispose  of 
some  of  the  extra  men.  If  other  departments  are  operated  by 
the  same  firm  he  may  be  able  to  turn  them  over  to  other  depart- 
ments needing  men  at  that  particular  time. 

At  the  close  of  the  month  the  average  daily  cost  of  regular 
and  extra  employees  is  figured  as  well  as  the  average  amount  of 
butter  manufactured  for  the  month  and  the  average  cost  of 
labor  per  pound  of  butter  manufactured.  A  comparison 
should  be  made  with  similar  reports  for  the  corresponding 
month  of  the  previous  year.  By  noting  the  rate  of  increase  or 
decrease  in  amount  manufactured  between  corresponding 
months  it  will  be  comparatively  easy  to  determine  as  to  the 
amount  of  labor  required  for  the  following  month. 

2.  Reducing  Cost  of  Nonproductive  Labor.  — The  cost  of  non- 
productive labor  should  be  carefully  regulated  and  the  work  of 
each  employee  whose  labor  is  thus  classified  should  be  analyzed 
and  the  profit  to  the  company  from  the  labor  of  the  employee 
in  question  should  be  determined  as  nearly  as  possible.  Book- 
keepers and  certain  clerks  are  indispensable,  although  their 
value  to  the  company  is  not  readily  determined.  There  ar 
other  nonproductive  employees  in  the  office  and  around  the 
factory  from  whom  a  definite  return  is  expected.  Before  en- 
gaging an  employee  for  doing  nonproductive  labor  the  following 
points  should  be  considered: 

1.  Will  the  labor  of  this  employee  show  direct  and  immediate 
result? 

2.  Will  the  company  make  any  profit  on  such  labor? 

3.  Is  it  possible  to  accomplish  this  work  with  the  present 
working  force? 

4.  Is  the  nature  of  the  work  such  that  the  employee  may  be 
engaged  on  a  percentage  basis? 

Distributing  the  Cost  of  Labor.  —  Productive  labor  is  gener- 
ally charged  directly  against  the  respective  departments.  The 
nonproductive  labor  of  an  employee  may  be  charged  directly 
if  the  entire  time  of  that  employee  has  been  devoted  to  one 


A  ' 


LABOR  97 

department.  The  employee  may  work  for  more  than  one  de- 
partment, but  the  nature  of  his  work  may  be  such  that  a  definite 
amount  of  time  is  devoted  to  each  department;  thus  his  salary  is 
divided  among  the  different  departments  for  which  he  has 
rendered  service  in  proportion  to  the  time  devoted  to  each.  The 
work  of  some  employees  is  of  such  a  nature  that  a  satisfactory 
division  of  the  cost  of  their  labor  is  almost  impossible.  Con- 
sider as  an  example  the  work  of  the  bookkeeper,  the  cashier, 
the  order  clerk,  and  the  shipping  clerk;  they  are  working  for 
the  different  departments  of  the  factory  at  the  same  time  and 
it  is  difficult  to  determine  the  amount  of  time  devoted  to  each. 

In  the  case  of  the  order  clerk  it  might  be  possible,  but  perhaps 
not  practical,  to  divide  his  time  by  counting  the  orders  written 
for  each  department  and  taking  for  granted  that  it  requires  the 
same  unit  of  time  for  writing  an  order  for  one  department  as  for 
the  other. 

Nonproductive  labor  may  be  divided  among  departments  on 
the  basis  of  the  amount  of  sales  made  by  each  department. 
Consider  for  example  that  there  are  three  departments  —  butter, 
ice  cream,  and  sweet  cream.  The  sales  of  butter  amount  to 
$10,000  for  the  month,  ice  cream  to  $1,000,  and  sweet  cream  to 
$500.  The  cost  of  nonproductive  labor  for  the  month  amounts 
to  $115,  then  the  amount  of  this  cost  to  be  carried  by  each 
department  is  in  proportion  to  the  total  sales,  as  follows: 

Butter  department  =  $115  X  — =  $100. 

11,500 

r~  ooo 

Ice  cream  department  =  $iic  X  ~     —  =  $10. 

11,500 

c»oo 

Sweet  cream  department  =  $115  X  — =  $5. 

11,500 

Through  a  careful  study  of  the  various  departments  it  is 
soon  learned  that  a  direct  proportion  in  accordance  with  sales 
is  not  absolutely  satisfactory,  as  it  requires  a  greater  amount 
of  nonproductive  labor  for  one  department  than  for  the  other 
on  the  same  volume  of  business.  It  may  be  found  that  the  non- 


98  MANAGEMENT   OF  DAIRY  PLANTS 

productive  labor  required  for  the  manufacturing  and  marketing 
of  $2.00  worth  of  butter  is  equivalent  to  the  labor  required  for  j 
manufacturing  and  marketing  $1.00  worth  of  ice  cream  and  that 
$1.00  worth  of  cream  requires  the  same  amount  of  nonproduc- 
tive labor  as  $2.00  worth  of  ice  cream.  In  that  case  the  figures 
by  which  to  proportion  the  nonproductive  labor  in  the  above 
problem  are  as  follows: 

Butter  department  pays  $115  X  -       —  =  $82.14. 

14,000 

Ice  cream  department  pays  $115  X  :        -  =  $16.43. 

14,000 

Sweet  cream  department  pays  $115  X  -        -  =  $16.43. 

14,000 

No  definite  rules  can  be  offered  by  which  to  make  the  proper 
distribution  of  nonproductive  labor,  as  that  is  governed  largely 
by  the  nature  of  the  business  as  well  as  by  local  conditions,  but 
the  manager  should  make  a  thorough  study  of  the  problem  and  ; 
place  the  cost  as  nearly  as  possible  where  it  belongs.    If  he  does  j 
not  do  this  the  statements  in  reference  to  cost  of  the  depart-] 
ments  will  be  misleading. 

When  proportioning  the  cost  of  labor  at  the  close  of  the 
month  a  permanent  record  should  be  preserved  giving  the] 
monthly   cost  of  direct  and  indirect  or  proportionate  labor 
(Form  IV). 


LABOR 


99 


FORM  IV 

CREAMERY  PROPORTIONED  YEARLY  LABOR  RECORD 


Month 

Butter  Dept. 

Ice  Cream  Dept. 

Sweet  Cream  Dept. 

Total 

Direct 

Propor- 
tionate 

Direct 

Propor- 
tionate 

Direct 

Propor- 
tionate 

I 

^ 
r 

45 
£ 

sl 

b^ 

^ 

**3 

£ 

.§ 

il 
r 

2 
E5 

u 

4Vi 

^  s 

§o| 

b  ^ 
^ 

3 

B5 

u 
« 

"s5 

g 

U 
* 

Jan. 

Feb. 

Etc. 

CHAPTER  VIII 
PURCHASE  OF  MILK  AND  CREAM 

SYSTEM  OF  DEALING  WITH  THE  PATRONS 

THE  buyer  of  the  raw  material  should  be  a  good  judge  of 
human  nature.  When  calling  on  a  patron  or  a  prospective 
patron  it  is  advisable  to  start  a  conversation  along  lines  which 
are  of  interest  to  the  producer.  The  condition  of  the  farm 
buildings,  lawn,  and  fields,  as  well  as  the  appearance  of  the 
farmer  himself,  should  interest  the  solicitor,  and  assist  him  in 
determining  what  topic  of  conversation  is  likely  to  be  of  greatest 
interest,  to  the  person.  The  solicitor  should  have  the  highest 
regard  for  the  ideas  of  his  fellow  men,  for  even  though  they 
may  not  coincide  with  his  own,  by  approaching  them  on  some 
subject  in  which  they  are  interested  he  is  assured  of  a  hear- 
ing and  it  should  then  be  possible  for  him,  if  he  uses  good  judg- 
ment, to  present  his  own  case  in  an  acceptable  manner. 

Paying  for  Milk  and  Cream  on  Quality  Basis.  —  It  is  evi- 
dent that  cream  which  is  of  good  quality  is  worth  more  money 
than  that  which  is  of  poor  quality.  If  butter  is  made  from  the 
separate  lots  the  butter  made  from  the  best  cream  will  invariably 
sell  for  the  most  money.  Therefore  the  manager  should,  as 
nearly  as  possible,  pay  for  the  cream  according  to  what  it  is 
worth  if  made  into  separate  lots  of  butter.  The  creamery  pay- 
ing the  same  price  for  inferior  as  for  good  cream  is  encouraging 
and  paying  a  premium  on  carelessness  which  will  tend  to  lower  j 
the  quality  of  raw  material  instead  of  improving  it. 

i.  Grading  the  Cream.  —  Some  creameries  accept  only  what  I 
is  called  first-grade  cream,  others  receive  first  and  second  grades, 
while  a  third  will  receive  cream  grading  as  first,  second,  and 
third.    No  general  classification  of  grades  has  been  recognized 

100 


PURCHASE  OF  MILK  AND  CREAM  IOI 

as  standard,  as  a  standard  which  is  practical  for  one  state  or 
locality  might  not  be  at  all  practical  elsewhere.  But  in  the 
leading  dairy  districts  it  is  generally  considered  that  cream 
classified  as  first  grade  should  be  what  is  called  sweet  cream, 
containing  not  to  exceed  0.20  or  0.25  per  cent  acid  and  be  free 
from  taint  or  foreign  flavors.  Second-grade  cream  is  generally 
understood  to  be  cream  of  a  higher  acidity;  it  may  even  include 
cream  of  a  sharp  acid  flavor  but  should  be  free  from  undesirable 
foreign  flavors.  Cream  below  second  grade  in  quality  should  be 
classified  under  the  head  of  third  grade. 

At  some  creameries  the  acidity  is  the  only  factor  on  which 
the  quality  is  based,  while  other  creameries  have  a  more  elabo- 
rate method  of  cream  judging,  exemplified  by  the  following 
method  adopted  by  the  Iowa  State  College:  flavor,  45;  acidity, 
25;  richness,  20;  body  and  cleanliness,  10. 

A.  Flavor.  —  Flavor  is  judged  by  tasting  the  cream  and  by 
grading  it  in  accordance  with  the  quality  of  butter  that  may  be 
made  from  it  under  ideal  conditions. 

B.  Acidity.  —  Cream  is  scored  perfect  on  acidity  when  con- 
taining 0.2  of  i  per  cent  acid  or  less.    For  each  ,0.1  of  i  per  cent 
acid  in  excess  of  this  amount  should  be  deducted  three  points 
from  the  perfect  score. 

The  acidity  of  the  cream  may  be  determined  by  a  decinormal 
alkali,  using  phenolphthalein  as  an  indicator,  or  by  an  alkali 
solution  prepared  from  alkali  tablets.  It  is  often  most  conven- 
ient to  prepare  the  solution  of  such  a  strength  that  it  will  be 
applicable  for  the  rapid  determination  method.  By  this  method 
the  solution  is  prepared  by  adding  one,  two,  or  three  tablets 
to  each  ounce  of  water.  For  taking  the  sample  of  milk  or  cream 
to  be  tested,  use  is  made  of  a  dipper  of  the  same  size  as  a  No. 
10  cartridge.  The  same  amount  of  the  prepared  solution  is 
added.  If  the  mixture,  after  being  thoroughly  mixed,  is  pink 
the  milk  or  cream  is  as  sweet  as  required.  If  the  mixture  is 
white  the  milk  or  cream  contains  a  higher  degree  of  acidity 
than  is  desired.  If  we  adopt  a  standard  of  i/io  per  cent  acidity 
then  a  solution  is  prepared  by  adding  one  tablet  to  each  ounce 
of  water;  for  a  2/10  per  cent  acidity  standard  two  tablets  are 


102  MANAGEMENT   OF   DAIRY   PLANTS 

used;  for  a  3/10  per  cent  acidity  standard  three  tablets  are 
used,  etc. 

C.  Richness.  —  Cream  testing  28  per  cent  of  fat  or  above 
will  receive  a  perfect  score  on  richness.    One  point  will  be  de- 
ducted for  each  per  cent  below  28  per  cent. 

D.  Body.  —  The  body  should  be  smooth  and  uniform.     It 
may  be  injured  by  being  partly  churned,  by  being  frozen,  or 
by  being  curdy.     Cleanliness  of  the  cream  and  container  is 
considered  in  this  connection. 

2.  Market  Value  of  Various  Grades  of  Cream.  — The  market 
values  of  the  various  grades  of  cream  fluctuate  in  accordance 
with  market  conditions  as  well  as  with  local  conditions.  At  a 
time  when  there  is  a  scarcity  of  butter  on  the  market  a  butter 
made  from  a  second-grade  cream  may  sell  for  nearly  as  much 
money  as  the  butter  made  from  cream  of  the  highest  quality. 
When  there  is  an  oversupply  of  butter  there  is  a  wider  range  in 
price  between  first  and  second  grades  and  the  second-grade 
cream  is  then  of  less  value  as  compared  with  cream  of  first 
grade.  Local  conditions  may  afford  opportunities  for  disposing 
of  the  lower  grades  of  butter  at  a  comparatively  high  price. 
Therefore  it  is  impossible  to  establish  any  set  rule  to  which  all 
creameries  might  be  required  to  conform.  By  making  a  thor- 
ough study  of  the  local  conditions  in  a  definite  locality  and 
considering  them  with  the  more  general  conditions  it  is  usually 
possible  for  the  creamery  manager  to  settle  on  some  definite 
basis  by  which  to  pay  for  cream  of  the  various  grades.  When- 
ever practicable  it  will  be  most  satisfactory  to  make  remittance 
for  the  cream  after  the  butter  has  been  sold,  and  then  remit  for 
each  grade  in  proportion  to  the  returns.  The  difference  made 
between  cream  of  different  grades  varies  from  nothing  to  five 
cents  per  pound  of  butter  fat.  Some  creameries  refuse  to  re- 
ceive any  milk  or  cream  which  will  not  grade  as  first.  This 
system  is  advisable  wherever  possible.  It  is  generally  conceded 
that  it  is  very  seldom  advisable  to  accept  third-grade  cream. 

Eliminating  Business  Secrets.  —  There  is  no  business  con- 
cern that  is  depended  on  for  square  dealing  to  a  greater  extent 
than  the  creamery.  The  producers  deliver  their  milk  and 


PURCHASE   OF   MILK   AND   CREAM  103 

cream  usually  without  any  definite  knowledge  of  the  amount 
of  butter  fat  it  contains  or  the  price  it  will  bring.  They  depend 
on  the  management  of  the  creamery  for  a  square  deal.  If  the 
manager  allows  any  ground  for  suspicion  it  will  eventually 
result  in  a  big  loss  in  patronage.  It  is,  therefore,  of  importance 
that  the  creamery  maintain  the  unlimited  confidence  of  its 
patrons.  This  is  most  readily  accomplished  by  the  manager's 
willingness  to  have  the  patrons  become  familiar  with  the 
method  of  management  so  far  as  it  interests  them. 

The  most  common  cause  for  misunderstanding  between 
the  patrons  and  the  management  of  a  creamery  is  found  in 
weighing  and  testing.  The  weighing  should  be  done  in  the 
presence  of  the  patron,  if  possible,  and  the  manager  should 
encourage  his  patrons  to  be  present  as  often  as  possible  when 
the  testing  is  done.  If  it  is  found  impossible  to  have  the  patrons 
witness  the  weighing  and  testing  then  it  is  advisable  to  encour- 
age them  to  buy  their  own  scales  and  hand  testers.  If  attempt 
in  that  direction  also  fails,  it  may  be  to  the  advantage  of  the 
creamery  to  keep  a  few  sets  of  spring  balances  and  testers  on 
hand  to  lend  to  such  patrons.  A  dissatisfied  patron  should 
never  be  allowed  to  discontinue  on  a  mere  suspicion  of  dis- 
honesty. It  is  usually  possible  for  the  scrupulous  business 
man,  by  methods  similar  to  those  mentioned,  to  convince  his 
patrons  of  the  integrity  of  his  firm. 

Promptness  in  Dealing  with  the  Patrons.  —  The  manager 
of  a  creamery  as  well  as  all  of  his  subordinates  should  be  prompt 
in  all  matters  pertaining  to  the  business.  The  drivers  collecting 
milk  or  cream  should  call  at  each  farm  at  definite,  prearranged 
days  and  hours.  Neglect  on  the  part  of  the  driver  in  complying 
with  this  requirement  will  invariably  result  in  loss  of  patronage. 
Checks  for  products  received  should  also  be  delivered  at  a  definite 
time.  If  checks  for  milk  or  cream  are  sent  through  the  mail 
they  should  be  mailed  on  a  definite  day  so  that  the  patrons  will 
always  have  the  satisfaction  of  knowing  when  they  may  expect 
to  receive  remittance. 

The  cash  system  of  paying  for  cream  makes  promptness 
in  the  matter  of  remittance  a  necessity.  This  system  is  there- 


104  MANAGEMENT  OF  DAIRY  PLANTS 

fore  a  good  educator  for  the  manager  who  considers  promptness 
to  be  of  secondary  importance.  In  some  localities  the  cash 
system  is  attractive  to  the  producers,  but  to  the  manufacturer 
it  has  the  disadvantages  that  it  increases  the  cost  of  bookkeep- 
ing, the  cost  of  labor  in  the  testing  room,  and  it  increases  the 
amount  of  capital  required  for  carrying  on  the  business.  In 
some  territories  it  is  unnecessary  to  pay  cash  for  cream,  provid- 
ing the  company  has  a  satisfactory  standing  financially.  A 
cooperative  creamery  usually  pays  once  or  twice  monthly,  but 
the  payments,  regardless  of  when  they  are  made,  should  always 
be  made  promptly  on  a  definite,  prearranged  day.  Instead  of 
paying  cash  for  cream  it  is  usually  possible  to  arrange  with  the 
patrons  for  paying  the  day  following  delivery.  By  that  system 
the  manufacturer  will  economize  in  labor,  as  the  testing  can  all 
be  done  at  the  same  time.  The  same  is  true  about  making  out 
the  checks  and  other  records. 

Follow-up  System  for  Securing  Patrons.  —  When  the  solici- 
tor has  become  acquainted  with  a  producer  but  has  been  unable 
to  buy  his  raw  material,  he  should  carry  on  a  systematic  cam- 
paign until  the  producer  eventually  decides  to  sell  him  his 
products. 

In  carrying  on  a  campaign  for  patrons  it  should  be  the  object 
of  the  solicitor  first  to  find  out  who  are  the  leaders  of  the  com- 
munity, as  it  is  to  his  interest  to  have  these  men  fully  under- 
stand his  proposition.  A  solicitor  who  has  a  good,  fair,  and 
square  proposition  to  make  to  producers  will  always  be  most 
readily  received  by  the  more  intelligent  of  the  farmers  and  it  is 
that  class  of  people  that  usually  command  leadership.  There- 
fore when  the  leaders  take  kindly  to  a  proposition  it  is  an  indica- 
tion of  good  progress.  The  solicitor  should  not,  however,  be 
deceived  and  work  with  people  who  expect  to  receive  such 
personal  advantages  as  will  not  be  shared  with  the  others  who 
later  may  become  patrons. 

i.  Map  of  the  Territory.  —  The  buyer  of  the  raw  material 
should  have  systematic  and  simple  but  comprehensive  records 
from  which  he  can  readily  obtain  desired  information  in  refer- 
ence to  his  territory.  A  map  of  the  territory  should  be  made 


PURCHASE  OF  MILK  AND  CREAM 


105 


from  information  received  from  the  solicitor.  For  that  purpose 
a  blank  divided  into  squares  is  convenient  (Fig.  21),  each 
square  representing  a  section.  A  creamery  manager  should 
have  so  complete  a  control  over  the  work  in  his  territory  that 


•21.  Gord 


FIG.  21.  —  Map  of  the  territory. 

he  can  produce  maps  of  all  routes  showing  location  of  patrons 
on  each  route,  of  patrons  delivering  their  own  cream,  and  farm- 
ers with  whom  the  creamery  is  not  yet  dealing.  The  latter 
may  be  marked  with  a  prominent  lead  pencil  mark  which  can 
readily  be  removed  when  they  become  patrons.  The  manager 
will,  from  a  glance  at  such  a  map,  have  a  fair  understanding 


IO6  MANAGEMENT   OF   DAIRY   PLANTS 

of  the  condition  of  his  territory  and  know  where  the  most  vigor- 
ous field  work  should  be  conducted. 

2.  Card  Records.  —  Card  records  consisting  of  three  different 
files  will  be  useful:  File  A,  active  patrons;  File  B,  discontinued 
patrons;  and  File  C,  prospective  patrons.  The  cards  of  active 
patrons  may  be  filed  alphabetically,  divided  under  routes  or 
stations.  These  cards  should  be  removed  from  one  file  to 
another  as  they  become  patrons  or  discontinue.  A  card  4  inches 
by  6  inches  should  be  large  enough.  Form  V  will  serve  as  an 
illustration. 

FORM  V 
CREAMERY  FIELD  RECORD 


Name Address 

Route No.  of  cows 

Disposition  of  product 

Reason  for  not  selling  to  us 

Called  on  him,  dates 

Result Remarks 

Wrote,  dates 

Result.  . 


Started  to  sell  to  us,  date . 

Discontinued,  date 

Cause. . 


By  making  a  comparison  between  this  card  and  the  territory 
map  the  manager  is  enabled  to  direct  the  field  work  from  his 
office  desk.  He  can  start  a  new  man  and  furnish  him  with  all 
necessary  information  in  reference  to  the  parties  whose  patron- 
age he  is  soliciting.  If  the  solicitor  receives  a  promise  from  one 
of  the  prospective  or  discontinued  patrons  that  he  will  be  ready 
to  deliver  his  products  at  a  certain  time,  then  the  party  in  charge 
of  the  field  work  should  keep  a  record  of  such  a  promise. 
This  can  be  done  most  readily  by  what  is  called  a  tickler,  which 
is  merely  a  small  card  file  that  is  intended  to  be  kept  on  the 
office  desk.  This  file  contains  index  cards  for  the  twelve 


PURCHASE   OF  MILK  AND  CREAM 


107 


months,  each  with  an  index  card  for  each  day  of  the  month. 
Cards  containing  future  dates  are  filed  at  the  proper  places,  and 
each  morning  before  starting  on  the  regular  routine  of  work, 
the  cards  filed  under  that  particular  day  are  given  due  atten- 
tion. 

3.  Daily  Record  of  Active  and  Discontinued  Patrons.  —  It 
is  to  the  advantage  of  a  creamery  to  keep  a  complete  record 
of  active  and  of  discontinued  patrons.  Some  creameries  keep 
a  separate  record  of  each  so  that  they  may  be  informed  imme- 
diately when  a  patron  discontinues.  It  is  less  difficult  to  have 
him  resume  shipping  if  an  effort  to  do  so  is  made  at  once.  The 
following  form  may  be  used  for  that  purpose.1 

FORM  VI 
MONTHLY  RECORD  OF  PATRONS  —  JULY 


Name  of  Patron 

Day  of  Month 

i 

2 

3 

4 

5 

6 

29 

30 

3i 

J   Tones 

30 

34 

23 

S  Mann  

40 

38 

On  this  report  are  made  daily  entries  of  tests;  by  making 
this  entry  for  each  shipment  it  becomes  easy  to  locate  errors 
made  in  the  testing  room.  As  an  example  consider  the  record 
of  J.  Jones  (Form  VI) ;  it  is  quite  possible  that  a  mistake  was 
made  on  July  5th  and  it  is  therefore  the  duty  of  the  manager 
to  write  Mr.  Jones  concerning  it  in  order  to  have  the  matter 
adjusted  satisfactorily  to  the  patron.  Report  (Form  VI)  is 
furthermore  of  importance  in  the  matter  of  determining  the 
frequency  of  delivery  and  may  furthermore  be  used  for  check- 
ing the  quality  of  cream  delivered  by  each  patron  by  also 
marking  score  or  grade  of  each  shipment  or  delivery. 


1  Securing  patrons  by  correspondence  will  be  considered  in  chapter  on  "Business 
Correspondence." 


108  MANAGEMENT   OF  DAIRY  PLANTS 

SYSTEMS  OF  MILK  AND  CREAM  PURCHASE 
,  AND  DELIVERY 

Frequent  delivery  of  the  raw  product  to  the  creamery  is 
one  of  the  principal  prerequisites  for  the  manufacture  of  a 
desirable  product.  It  has  always  been  customary  to  make  fre- 
quent deliveries  to  a  whole  milk  plant.  There  the  milk  is 
usually  delivered  daily  during  the  summer  season  and  from 
three  to  four  days  a  week  during  the  winter  season.  Such 
frequent  deliveries  are  made  because  the  producers  realize  that 
they  will  sustain  a  financial  loss  if  the  deliveries  are  less  fre- 
quent, as  milk  containing  a  high  degree  of  acidity  cannot  be 
properly  skimmed.  The  older  milk  is  also  more  variable  in 
quality  and  therefore  less  desirable  as  a  feed  for  calves. 

The  attitude  of  the  producer  in  reference  to  frequency  of 
delivery  is  somewhat  different  in  the  gathered  cream  territories. 
This  is  brought  about  partly  by  the  manufacturer  who  some- 
times in  his  greed  for  more  business  informs  producers  that  it  is 
unnecessary  to  make  daily  deliveries  when  selling  cream.  His 
statement  is  partly  true,  inasmuch  as  the  cream  does  not  deteri- 
orate as  readily  as  does  milk.  But  cream  absorbs  odors  more 
readily  than  milk,  and  because  it  has  less  bulk  than  milk  cream 
is  often  left  in  the  kitchen  or  in  the  cellar,  places  where  the 
milk  is  very  seldom  kept,  and  it  will  therefore  soon  acquire 
undesirable  flavors.  If  the  frequency  of  delivery  had  not  been 
lessened  by  the  introduction  of  the  hand  separator,  dairying  as 
a  whole  throughout  the  United  States'  would  have  gained  in 
profit  and  prestige. 

The  system  of  organization  of  territory  may  for  convenience 
be  considered  under  the  heads  of:  The  individual  system,  the 
cooperative  system,  tjie  route  system,  the  station  system,  the 
local  agent  system,  and  the  cooperative  selling  system. 

The  Individual  System  of  Delivery.  —  Under  this  system 
the  producer  delivers  his  own  milk  or  cream  to  the  creamery 
in  person  or  ships  it  by  rail. 

i.  Delivering  of  Cream  in  Person. — At  many  local  cream- 
eries the  producers  deliver  their  own  milk  and  cream  and  for 


PURCHASE   OF   MILK  AND   CREAM  IOg 

the  local  creamery  there  is  possibly  no  more  satisfactory  sys- 
tem. It  has  the  advantage  that  full  remittance  is  made  without 
deduction  for  hauling;  it  brings  the  producer  in  close  touch 
with  the  butter  maker  or  manager  and  each  learns  to  appreciate 
the  work  and  effort  of  the  other.  If  the  product  delivered  by  a 
patron  is  of  poor  quality  the  butter  maker  can  discuss  the 
matter  directly  with  him  and  make  valuable  suggestions  as  to 
how  such  difficulties  may  be  overcome. 

The  main  criticisms  that  may  be  offered  against  this  system 
are:  it  may  increase  the  cost  per  pound  of  butter  fat  delivered 
by  the  route  driver.  This  objection  is  naturally  confined  to 
territories  in  which  routes  are  also  operated.  The  individual 
system  is  not  far-reaching;  farmers  living  from  five  to  six  miles 
from  the  creamery  can  be  interested  in  this  system  only  with 
difficulty.  The  busy  farmer  finds  delivery  of  cream  a  burden 
and  as  a  result  he  often  starts  to  make  butter  on  the  farm;  such 
a  patron  is  often  slow  to  return.  The  time  required  for  han- 
dling a  given  amount  of  milk  or  cream  at  a  creamery  is  some- 
what increased  by  the  individual  system. 

2.  Producer  Shipping  Cream  by  Rail.  —  The  system  of  ship- 
ping cream  by  rail  has  become  rather  popular  during  recent 
years.    By  this  system  it  is  possible  for  the  producer  in  a  more 
thinly  settled  district  where  a  creamery  cannot  be  operated 
profitably  to  sell  his  butter  fat  at  market  price.    Formerly  such 
farmers  were  compelled  to  sell  their  butter  in  the  country  store. 
The  system  has  met  opposition,  as  it  is  claimed  that  it  reduces 
the  patronage  of  the  local  creamery.    It  is  hardly  logical  that 
an  up-to-date  local  creamery  should  experience  much  difficulty 
on  that  account,  as  the  local  creamery  has  the  advantage  of 
saving  the  shipping  expenses  and  receives  cream  of  better 
quality. 

3.  Creamery  System  of  Handling  Individual  Shipments.  —  A 
creamery  receiving  individual  railroad  shipments  should  imme- 
diately upon  receipt  of  the  first  shipment  from  a  producer  write 
a  personal  letter  to  that  shipper.    This  letter  should  be  writ- 
ten in  such  a  tone  that  it  will  encourage  future  shipments.    It 
should  also  contain  a  report  of  weight  and  test  of  cream  received 


IIO  MANAGEMENT   OF   DAIRY   PLANTS 

and  value  of  butter  fat.  It  should  explain  in  detail  the  cream- 
ery's method  of  paying,  of  sending  reports,  and  of  returning 
empty  cans,  and  furnish  any  other  special  information  which 
might  be  of  value  to  the  shipper. 

A.  General    Letter    of    Information.  —  General    letters    of 
information  in  reference  to  care  of  milk  and  cream,  causes  of 
variation  in  test  of  milk  and  cream,  should  be  mailed  to  the 
patrons.    Such  a  letter  should  be  brief  enough  so  the  patrons 
will  take  time  to  read  it.    It  should  cover  merely  the  essential 
points.    Letters  in  reference  to  care  of  milk  and  cream  might 
present  the  following  ideas:  First,  the  value  of  cooling  the  milk 
and  cream  immediately  and  before  it  is  mixed  with  cream  from 
the  previous  milking,  and  of  leaving  it  in  fresh,  cold  water  at  a 
place  where  the  atmosphere  is  pure;  second,  the  advantage  of 
skimming  rich  cream;  third,  care  of  cream  separator  and  uten- 
sils, discussing  the  value  of  using  slacked  lime  or  washing  pow- 
der in  the  dairy  for  cleaning  purposes;  fourth,  the  value  of 
keeping  the  barn  and  cows  clean;  fifth,  the  value  of  using  a 
sanitary  milking  pail,  if  a  practical  sanitary  pail  can  be  fur- 
nished the  customers  addressed.    Other  points  on  the  care  of 
milk  and  cream  may  be  discussed  in  such  a  letter,  but  all 
should  be  offered  in  the  form  of  suggestions  and  not  in  the  form 
of  rules  and  no  suggestion  should  be  offered  unless  the  writer  is 
able  to  prove  that  it  will  be  to  the  advantage  of  the  producer 
to  follow  it. 

B.  Shipping  Tags  and  Seals.  —  Shipping  tags  and  seals  are 
usually  furnished  by  the  creamery.    A  shipping  tag  should  bear 
the  creamery  firm  name  and  address  and  blank  lines  to  be  filled 
in  by  the  shipper  with  his  name,  shipping  station,  and  post 
office.    Some  creameries  have  a  rubber  stamp  made  for  each  of 
their  shippers  and  stamp  the  tags  with  the  name  and  address  of 
the  patron.    This  tag  will  be  used  for  the  following  shipment. 
A  new  leaden  seal  is  also  dropped  in  the  empty  can  and  this  is 
used  by  the  shipper,  who  has  a  seal  press  furnished  by  the 
creamery,  perhaps  bearing  the  creamery  name  on  one  side  and 
the  number  on  the  other  side. 

Other  forms  of  tags  are  used,  such  as  brass  tags.    These  are 


I  " 

35 


B  i 


112 


MANAGEMENT   OF   DAIRY   PLANTS 


furnished  by  the  creamery.  The  addresses  of  the  creamery  and 
patron  are  pressed  into  the  brass  and  in  order  that  they  may  be 
read  easily  the  letters  are  rilled  with  black  paint.  The  brass 
tag  may  be  soldered  onto  the  breast  of  the  can  or  fastened  to  the 
can  with  a  wire  loop  about  four  inches  in  length  and  two  inches 
in  width.  The  ends  of  this  loop  are  riveted  together.  The  cover 
of  the  can  is  often  fastened  to  the  can  with  this  loop.  The  ad- 
vantage thereof  is  that  the  covers  of  the  cans  will  not  be  ex- 
changed; the  disadvantage  is  that  the  can  is  more  difficult  to 
clean  when  the  cover  is  attached,  especially  if  a  can- washing 
machine  is  used. 

C.  The  Cream  Can.  —  The  cream  can,  before  being  returned, 
should  be  properly  marked.  It  should  have  the  name  of  the 
shipper  painted  on  the  breast,  and  below,  in  large  letters,  the 
name  of  the  shipping  station.  The  weight  of  the  empty  can 
with  cover  should  be  painted  on  the  can,  as  that  will  facilitate 
the  work  of  the  one  who  receives  the  cream  at  the  creamery. 
The  creamery  manager  should  insist  on  receiving  the  transpor- 
tation company's  receipt  for  empty  cans,  then  in  case  of  loss  of 
cans  the  transportation  company,  even  though  it  is  not  held 
responsible,  will  make  a  greater  effort  toward  locating  them. 

A  large  creamery  with  a  separate  receiving  department  may 
keep  a  special  record  of  the  number  and  size  of  cans  received 
from  each  patron;  the  empty  cans  when  returned  are  checked 
against  such  a  record  (Form  VII). 

FORM  VII 

RECEIVING  CLERK'S  CAN  RECORD 


Name 

Address 

No.  of  cans 

lo-gal.  size 

8-gal.  size 

5-gal.  size 

J.  Johnson  

Boro 

i 

i 

C.  Jones  

Simpson 

2 

Route  No.  i  ... 

Albany 

8 

i 

PURCHASE   OF  MILK  AND  CfcEAM  113 

The  bills  received  from  the  transportation  company  are  also 
checked  against  the  receiving  clerk's  can  record. 

The  cream  is  next  turned  over  to  the  cream  department  where 
it  is  weighed  and  tested  and  a  record  thereof  kept  on  the  daily 
cream  receiving  blank  (Form  VIII).  The  samples  should  be 
tested  in  duplicate  and  retested  if  they  do  not  check  with  pre- 
vious tests  of  cream  delivered  by  the  particular  patron. 

The  individual  shippers  usually  furnish  their  own  cans. 
Some  creameries  furnish  cans  for  their  new  patrons  for  trial 
shipments,  but  demand  that  the  producers  later  furnish  their  own 
cans.  A  ledger  entry  is  made  of  cans  thus  furnished  the  patrons 
and  if  cans  are  kept  longer  than  the  time  for  which  they  were 
promised  as  a  loan,  then  the  value  of  the  cans  is  deducted  from 
the  cream  check  of  the  patrons.  This  method  of  collecting  for 
cans  should  be  fully  understood  by  the  patron  at  the  time 
when  the  can  is  turned  over  to  him.  Other  creameries  are 
willing  to  loan  cans  to  all  of  their  patrons.  This  latter  system, 
however,  encourages  negligence  on  the  part  of  the  patrons  in 
taking  care  of  the  cans,  and  the  loss  sustained  on  account  of  lost 
cans  is  usually  heavy. 

FORM  VIII 

"DAILY  CREAM  RECEIVING  RECORD 


SUNSET  CEEAMEEY 
SUMSET.  LA. 

Dot 

e 

NAME 

ADDRESS 

Score 

Tf 

Gross 
Weight 

Tore 

UV^hf 

Tes»- 

Fbunds 
fbt 

REMARKS 

772  z&2sr-ru£&r-S- 

7??orz&&7 

<?/ 

430 

55 

/£/ 

6£ 

34- 

z/d 

tfcrujji,    /*Za  3 

403 

/<?// 

4/3 

da 

33! 

29 

960 

<£   $-tm&4 

Zfreje^-iAs&e, 

93. 

<9/£ 

6Z 

/6 

46 

31 

143 

Q.  ^3^n&&jl<rris 

90. 

«/<£ 

69 

zo 

60 

J54 

&5 

^i^Pcn^Ai.  'TT^y  / 

9? 

///<? 

6/6 

?/E 

604 

3Z5 

M&.3 

« 

114  MANAGEMENT   OF  DAIRY  PLANTS 

The  Cooperative  System  of  Delivery.  —  By  this  system 
patrons  conveniently  located  join  in  changing  off  in  hauling 
their  products  to  the  creamery.  Such  an  association  of  patrons 
is  usually  known  as  a  club.  This  method  of  delivery  has  these 
advantages  over  the  individual  system:  First  it  reduces  the 
time  required  by  each  individual  for  hauling;  second,  more 
distant  producers  can  deliver  their  products  at  a  profit,  and 
third,  the  work  of  receiving  at  the  creamery  is  somewhat  re- 
duced. This  system  is  practically  the  same  as  the  individual 
system  and  the  same  methods  adopted  for  the  individual  sys- 
tem apply  to  the  cooperative  system. 

Route  System  of  Delivery.  —  The  route  system  is  the  method 
of  delivery  by  which  the  milk  or  cream  is  collected  by  a  person 
(the  driver)  who  receives  (from  the  patrons)  a  definite  compen- 
sation for  service  rendered.  The  driver  may  be  hired  by  the 
patrons  or  by  the  creamery  to  which  he  delivers,  but  if  he  re- 
ceives his  salary  from  the  creamery  the  total  amount  paid  for 
his  services  should  be  deducted  from  the  patrons'  checks,  in 
proportion  either  to  the  amount  of  butter  fat  or  to  the  pounds 
of  milk  or  cream  delivered  by  each  patron. 

The  following  advantages  may  be  mentioned  for  this  sys- 
tem: First,  it  increases  the  territory  of  the  creamery;  routes 
are  successfully  operated  to  a  distance  of  from  twelve  to  fif- 
teen miles  from  the  creamery.  In  some  districts  this  system 
has  developed  to  the  extent  that  the  original  routqs  receive 
cream  from  sub-routes  which  start  where  the  original  routes 
discontinue  and  cover  territory  still  farther  distant  from  the 
creamery;  second,  distant  patrons  are  always  pleased  to  be 
relieved  of  hauling,  especially  during  the  summer  season;  third, 
an  able  driver  should  be  in  a  position  to  greatly  increase  the 
patronage  of  the  creamery;  fourth,  the  cream  collected  on  the 
routes  is  usually  of  higher  quality  than  that  brought  by  individ- 
uals, as  it  is  as  a  rule  collected  at  shorter  and  more  uniform 
intervals. 

Disadvantages  may  be  mentioned  as  follows:  First,  cost 
of  hauling;  if  the  cost  of  hauling  exceeds  three  cents  per  pound 
of  butter  fat  in  cream  and  five  cents  per  pound  of  butter  fat 


PURCHASE  OF  MILK  AND  CREAM  1 15 

in  milk  after  the  route  has  been  well  established,  then  the  future 
success  of  such  a  route  may  be  considered  rather  questionable; 
second,  scarcity  of  capable  haulers;  third,  increased  length  of 
time  during  which  the  cream  is  in  transit  to  the  creamery;  this 
objection  is  practically  eliminated  if  the  cream  receives  proper 
care  by  the  hauler. 

1.  Residence  of  the  Driver.  — The  most  convenient  residence 
for  the  driver  collecting  milk  is  at  the  end  of  the  route  of  great- 
est distance  from  the  creamery.    All  the  milk  will  be  collected 
on  the  way  to  the  creamery  and  the  skim  milk  will  be  delivered 
to  the  patrons  when  making  the  return  trip. 

The  driver  collecting  cream  should  be  located  close  to  the 
creamery  so  that,  when  starting  on  his  route  in  the  morning, 
he  can  collect  the  cream  produced  along  one  road  and  when 
returning  to  the  creamery  collect  the  cream  along  another  road. 
A  driver's  travel  from  the  creamery  to  his  home,  after  complet- 
ing his  day's  work,  represents  nonproductive  labor. 

2.  Collecting  in  Individual  or  in  Common  Cream  Gathering 
Cans. — The  cream  may  be  collected  in  individual  cans;  the 
weighing  and  sampling  of  the  cream  is  then  usually  done  at  the 
creamery.    Or  the  driver  may  collect  in  common  cream  gather- 
ing cans  and  weigh  and  sample  the  cream  at  the  farm.    The 
cream   from    several    patrons    is    thus    mixed    in    the    same 
can. 

The  advantages  of  using  individual  cans  are:  First,  elimina- 
tion of  losses  due  to  inaccurate  weighing  and  sampling;  it  is 
usually  difficult  for  one  of  less  experience  to  secure  an  accu- 
rate sample  for  testing,  especially  during  the  winter  season 
when  some  of  the  cream  may  be  frozen;  second,  less  cream  is 
lost  to  the  patrons  as  the  cream  can  all  be  removed  from  the 
cream  can  at  the  creamery  by  applying  warm  water  on  the  out- 
side of  the  can.  Heavy  cream  adhering  to  the  can  is  removed 
with  difficulty  on  the  farm  where  there  is  usually  a  scarcity  of 
warm  water;  third,  it  gives  the  butter  maker  better  control  of 
the  quality.  He  can  grade  the  cream  as  he  deems  best.  He 
knows  the  defect  of  each  individual's  cream  and  can  talk  intel- 
ligently to  the  producer  about  how  to  improve  it;  fourth,  it 


Il6  MANAGEMENT   OF    DAIRY   PLANTS 

makes  it  possible  to  make  use  of  a  less  competent  driver  when 
an  able  man  cannot  be  secured. 

Advantages  in  using  the  common  cream  gathering  cans  and 
weighing  and  sampling  the  cream  when  receiving  it  at  the  farm 
are: 

First,  patrons  who  prefer  to  do  so  may  witness  the  weighing 
and  sampling  of  their  cream.  Such  patrons  may,  however,  be 
satisfied  by  using  the  individual  cans  if  the  driver  brings  a 
pair  of  scales  and  weighs  the  cream  when  he  receives  it.  The 
can  may  be  marked  with  its  tare  weight  so  the  net  amount  of 
cream  is  readily  determined.  It  may  also  be  advisable  at  places 
for  the  hauler  to  take  the  sample  even  though  the  individual 
cans  are  used. 

Second,  the  same  amount  of  cream  makes  less  of  a  load  and 
occupies  less  space  on  the  wagon. 

Third,  churning  of  the  cream  on  the  road  is  prevented  by 
filling  the  cans  or  by  using  cans  equipped  with  float.  This 
advantage,  as  in  the  case  of  the  second  mentioned,  is  in  part 
secured  for  the  individual  can  system  by  using  a  special  indi- 
vidual can  which  is  equipped  with  float  and  so  constructed  that 
two  or  more  can  be  placed  on  top  of  each  other  in  the  wagon. 

Fourth,  when  less  cans  are  needed  on  the  wagon  less  labor 
will  be  required  for  keeping  the  cream  cold  while  in  transit. 
This  is  true  especially  when  the  jacketed  cream  can  is  used. 

3.  Care  of  Cream  while  on  the  Route.  —  If  the  cream  is  mixed 
by  the  driver,  care  should  be  taken  to  mix  cream  of  same  quality 
together,  and  to  use  separate  cans  for  each  grade.  If  the  cream 
is  bought  on  a  quality  basis,  then  some  system  should  be 
adopted  for  grading  which  can  be  operated  intelligently  by  the 
hauler,  for  the  cream  should  be  graded  when  it  is  received  by 
the  driver. 

If  the  regular  steel  milk  cans  are  used  for  cream,  in  the  sum- 
mer they  should  be  wrapped  with  burlap.  This  should  be  kept 
wet.  The  bottom  of  the  wagon  should  be  covered  with  a  wet 
blanket,  canvas,  or  several  thicknesses  of  burlap.  This  should 
be  wet  frequently  by  throwing  a  few  pails  of  cold  water  over  it. 
Each  pound  of  water  that  is  converted  into  steam  takes  up  heat. 


PURCHASE  OF  MILK  AND   CREAM  117 

It  has  been  demonstrated  that  not  merely  will  cream  cared  for  in 
this  manner  remain  without  increase  in  temperature,  but  will 
often  reach  the  creamery  cooler  than  when  received  from  the 
patrons. 

A  special  can  with  a  deep  cover  in  which  ice  may  be  placed 
has  been  used  to  advantage  by  several  creameries.  Others  use  a 
small  steel  two-quart  can  with  a  tight-fitting  cover.  This 
is  filled  with  crushed  ice  and  put  into  the  cream  can.  The  ice 
is  carried  by  the  driver  in  an  insulated  wooden  box. 

4.  Checking  Butter  Fat  Losses  of  the  Cream  Route.  —  If  in- 
dividual cans  are  used,  the  cream  from  the  routes  will  be  han- 
dled as  by  the  individual  system  and  the  driver  is  not  held 
responsible  for  butter  fat  losses  sustained  from  such  patrons. 
If  the  cream  is  weighed  and  sampled  by  the  hauler,  then  he 
should  furnish  a  record  of  the  amount  of  cream  credited  to  each 
patron  (Form  IX).  The  total  amount  of  cream,  according  to 
the  hauler's  report,  should  equal  the  weight  of  the  entire  load  as 
weighed  at  the  creamery.  The  individual  samples,  as  well  as 
the  composite  sample  of  cream  from  the  entire  route,  are  tested 
at  the  creamery,  and  the  total  amount  of  fat  paid  for  according 
to  the  driver's  report  should  be  equal  to  the  amount  of  fat  re- 
ceived at  the  creamery,  figured  from  the  creamery  weight  and 
composite  sample. 


n8 


MANAGEMENT   OF   DAIRY   PLANTS 


DRIVER'S    REPORT 
Route  No,.... 


FORM   IX 

ROYAL  CREAMERY  CO. 

Royal,    France 


Dote... 


NAME  OF  PATRON 


Bottl  ©  No.  Lbs  of  Crecrm 


Test 


Lbs.  of  Fat 


I2'/0 


4Z.5 


24. 


/O.2 


6/7 


22.5 


2.4 


50.0 


/3.0 


/o// 


24.5 


//z 


35.0 


7.2 


314 


4O.O 


38.0 


/5.2 


72.5 


30.5 


//48 


3/.O 


32.0 


9.9 


/O// 


22.5 


/6.5 


4.2 


/2.5 


33.0 


4.1 


485 


/O.O 


3/.O 


!8.0 


O 

41$ 


335.0 


/oo.o 


PURCHASE   OF   MILK  AND   CREAM 
FORM  X 

ROUTE-CHECKING  RECORD 
Route  No.  3 


IIQ 


Amount  Received 

Ami.  paid  j  or 

Overage 

Shortage 

Date 

Cream 

Test 

Fat 

Cream 

Fat 

Cream 

Fat 

Cream 

Fat 

March 

i 

303 

30-5 

92.4 

303 

91-5 

•9 

3 

340 

29.0 

98.6 

34i 

IOI.O 

i 

2.4 

5 

33i 

29.0 

96.0 

335 

IOO.O 

4 

4.0 

Total 

The  route-checking  record  (Form  X)  is  kept  up  daily  for  the 
purpose  of  checking  the  accuracy  of  the  work  done  by  the 
drivers.  It  is  unnecessary  to  have  special  printed  blanks  for 
this  purpose,  a  cheap  book  being  satisfactory.  A  page  should 
be  allowed  for  each  route.  This  book  should  be  left  at  a  place 
where  the  drivers  have  access  to  it,  as  they  are  usually  as  much 
interested  in  having  their  work  check  as  is  the  creamery 
operator. 

On  examining  the  sample  route-checking  record  (Form  X), 
it  will  be  noted  that  there  were  some  errors  either  in  taking  the 
samples  or  in  testing.  The  person  doing  the  testing  should 
always  be  certain  that  his  own  work  is  done  correctly.  To  do 
this  he  must  make  duplicate  tests.  If  it  is  evident  that  the 
driver  is  making  mistakes  in  taking  the  samples,  then  he  should 
be  so  informed,  and  properly  instructed  so  that  future  errors 
will  be  avoided.  If  errors  in  weights  of  cream  are  noticed,  it  is 
most  likely  due  to  inaccuracy  of  the  scales,  or  failure  to  balance 
the  scales  for  each  weighing. 

It  is  advisable  to  have  the  names  of  patrons  written  on  the 
driver's  report  at  the  office.  The  names  should  be  written  in 
the  order  in  which  the  hauler  calls  on  the  patrons.  By  this 
method  the  names  are  written  more  plainly  and  fewer  mistakes 


120  MANAGEMENT  OF  DAIRY  PLANTS 

will  occur.  Furthermore  this  plan  brings  immediate  informa- 
tion to  the  office  in  reference  to  discontinued  patrons. 

Station  System.  —  A  cream  station  is  a  plant  rented  or 
owned  and  operated  by  a  creamery  for  the  purpose  of  buying 
and  usualy  pasteurizing  cream  collected  from  the  surround- 
ing territory,  and  then  sending  it  to  the  creamery  for  manu- 
facture. The  station  itself  may  receive  cream  from  individual 
patrons  and  from  routes,  and  so  far  as  the  cream  purchasing  is 
concerned  this  is  managed  in  the  same  manner  as  in  a  small 
creamery.  A  building  15  by  30  feet  in  size  usually  answers  the 
purpose,  and  the  main  equipment  needed  is  a  4  to  10  horse- 
power boiler,  a  2  horse-power  engine,  a  water  pump,  a  steam 
tester,  and  a  cream  ripener  which  may  be  used  both  as  a  cream 
pasteurizer  and  as  a  cooler.  For  a  skimming  station  one  or 
more  separators  should  be  added  and  the  size  of  the  boiler  and 
engine  increased  in  proportion. 

The  greatest  advantages  of  the  station  are  that  the  cream- 
ery, through  its  agent  (the  station  operator),  can  keep  in  close 
touch  with  its  more  distant  customers  and  that  the  quality  of 
the  cream  is  improved  by  pasteurizing  and  properly  cooling  it 
before  it  is  shipped  to  the  central  plant.  The  main  objection 
to  the  station  system  is  the  cost  of  operation  and  the  invest- 
ment involved. 

A  station  should  receive  cream  from  not  less  than  300  to  400 
cows  in  order  to  keep  the  expense  per  pound  of  butter  fat  within 
a  reasonable  limit.  The  expense  may  be  somewhat  reduced  if 
it  is  possible  for  the  station  operator  to  haul  the  cream  from  one 
of  the  routes  three  days  of  the  week  and  receive  cream  at  the 
station  on  the  other  three  days.  Some  of  the  stations  manufac- 
ture butter  enough  to  take  care  of  local  demand. 

i.  Station  Reports.  —  Form  XI  is  a  report  blank  which  may 
be  used  by  the  stations  in  reporting  to  the  central  plant.  It  will 
be  noted  that  part  of  this  blank  is  filled  out  at  the  central  plant. 
The  statement  is  intended  to  give  a  complete  record  of  the  daily 
cream  receipts  of  the  station.  Losses  sustained,  due  to  improper 
weighing  or  testing,  and  the  disposition  of  the  product  reported 
by  this  record  are  checked  at  the  central  plant. 


PURCHASE   OF   MILK   AND   CREAM 
FORM   XI 


121 


..STATION 


ROUTE 

RECEIVED 

CHETCK  AT    STATION 

•  Loss    OP  GA.N--&T 

REMARKS 

CRCAM 

BUTTER 

FAT 

CRCAM 

Ttsr 

BUTTCP 

f/41 

LOSS 

GAIN 

/ 

6Z4 

167. 

g 

6ZO 

30 

/<3^ 

O 

/ 

<? 

z 

3Z/5 

80 

(7 

324 

W' 

SZ. 

6 

£. 

2 

4. 

41  Z 

H3 

3 

4  tO 

&5 

4 

? 

JW 

Zid 

67. 

6 

zis 

5<3: 

<M 

s 

/ 

/ 

Check  Wl        Ttert       Bettor  roll 

TOTAL 

/S755 

443. 

5 

130Z 

4SZ 

7 

Z 

3 

6 

5 

I       1 

Held    from    Las^    Shipment 

4Z 

5^7 

'  IZ 

6 

Total 

I6Z4 

4G>& 

3 

SUMMARY 

^'^hel/far    cK^n?r^  

ss 

j«l^ 
iTi' 

% 

t> 

/ 

Ship  fQ95    .Ib5     Cretam. 
R-r.M  /(P^'r7   Hm     r,rrnm 

£<*5         b-rf     ,?//.£       RF 

Held  for  Next    Shipment 

0 

o 

TOTAL 

tG>Z4 

465 

6 

/c, 

JAIN    < 

(Fa 


2.  Shipping  the  Cream  to  the  Central  Plant.  —  Each  can  is 
properly  addressed  and  billed  as  explained  on  page  no,  but  in 
addition  one  of  the  cans  bears  a  tag  of  conspicuous  color;  on  one 
side  may  be  written  the  address  of  the  firm  for  whom  the  ship- 
ment is  intended,  on  the  other  side  it  carries  the  following 
information : 

No.  cans  shipped 

Lbs.  cream  shipped 

Test  of  cream 

Lbs.  butter  fat 

Remarks.  . 


Signed . 
Station . 


The  receiving  department  of  the  main  plant  is  by  this  re- 
port enabled  to  learn  whether  cream  has  been  lost  while  in 
transit  or  if  there  is  a  variation  from  weights  or  tests  reported. 
If  variation  is  found  it  should  be  noted  if  there  are  any  indica- 
tions of  loss  while  in  transit,  such  as  one  of  the  cans  being  only 
part  full.  If  cream  has  been  lost  it  is  readily  indicated  by  the 
old  cream  line  on  the  inside  of  the  can  and  the  seal  is  likely  to  be 


122  MANAGEMENT   OF   DAIRY   PLANTS 

broken  or  perhaps  replaced  with  another  seal  not  bearing  the 
proper  stamp.  If  it  is  evident  that  the  cans  have  been  tampered 
with,  it  is  advisable  to  call  the  inspector  of  the  transportation 
company  and  request  that  he  inspect  the  shipment  before  the 
cream  is  removed  from  the  cans.  When  it  has  been  inspected, 
it  is  handled  in  the  usual  manner  and  a  claim  is  made  out  against 
the  transportation  company  for  loss  sustained.  In  presenting 
this  claim  to  the  transportation  company  it  should  be  explained 
in  detail  how  and  when  the  shipment  was  received,  where  it 
originated,  by  whom  shipped,  etc.  This  letter  should  be 
accompanied  with  original  bill  of  lading  or  expense  bill. 

Local  Agent  System.  —  Under  this  system  the  central  plant 
employs  a  person  (the  cream  buyer)  whose  duty  it  is  to  buy  for, 
and  ship  the  cream  to,  the  central  plant. 

The  advantage  of  this  system  is  that  the  creamery  will  ob- 
tain more  cream  from  a  distant  territory  by  having  a  local  man 
as  buyer.  The  main  disadvantage  is  the  cost  of  collecting, 
such  a  buyer  usually  receiving  from  one  to  three  cents  per 
pound  of  butter  fat  for  collecting.  There  may  also  be  a  de- 
crease in  quality  of  cream  from  such  agents,  due  mainly  to  in- 
capability and  disinterest  on  the  part  of  the  buyer;  he  is  paid  for 
collecting  the  cream  often  regardless  of  quality  and  frequently 
he  is  even  unable  to  decide  as  to  quality.  Decrease  in  quality 
may  also  be  due  partly  to  the  condition  of  the  place  where  the 
cream  is  kept  after  it  has  been  collected,  for  it  is  not  always 
arranged  with  facility  for  cooling. 

Cooperative  Cream  Selling  System.  —  A  cooperative  cream 
selling  organization  is  an  association  of  producers  formed  for 
the  purpose  of  collecting  and  selling  the  cream  produced  by 
its  members.  It  eliminates  the  unnecessary  expense  of  hauling 
by  competitive  creameries  sending  teams  over  the  same  road. 
It  reduces  the  expense  of  soliciting  by  competitive  creameries. 
It  increases  the  selling  price  of  the  cream  by  selling  to  the  high- 
est bidder.  It  promotes  greater  interest  in  dairying  and  as  a 
result  the  quality  and  quantity  of  the  cream  will  be  increased. 


CHAPTER  IX 
PURCHASING  EQUIPMENT  AND  SUPPLIES 

THE  BUYER 

THE  qualified  buyer  is  the  one  who  obtains  the  ::  ost  value 
for  his  money  without  defrauding  the  salesman  of  money  which 
is  justly  due  him.  A  business  transaction  has  been  defined  as 
being  an  exchange  of  values.  Therefore,  if  a  permanent  busi- 
ness relationship  is  established  between  two  firms,  the  business 
transaction  between  them  must  be  mutually  beneficial. 

The  Buyer  Should  Know  the  Present  Value  of  the  Goods 
He  Is  to  Buy.  —  The  unqualified  buyer  is  ignorant  of  values. 
He  may  realize  his  own  ignorance  and  imagine  that  the  salesman 
is  taking  advantage  thereof.  As  a  result  he  may  make  an  arbi- 
trary offer  which  is  perhaps  even  kss  than  the  cost  of  the  goods 
to  the  manufacturer.  He  is  not  willing  to  pay  the  price  at 
which  the  goods  are  offered  by  the  salesman,  regardless  of  how 
fair  such  a  price  may  be. 

The  salesman  who  is  anxious  to  do  business  studies  the  char- 
acter of  the  buyer.  It  is  soon  clear  to  him  that  he  is  dealing 
with  a  man  who  is  either  ignorant  as  a  buyer  or  perhaps  a  man 
who  is  unwilling  that  the  manufacturer  or  dealer  should  make  a 
fair  profit.  The  latter  class  of  men  are  not  considered  as  desir- 
able to  do  business  with  and  some  firms  even  refuse  to  sell  them 
goods.  If  the  salesman  considers  that  the  buyer  belongs  to  the 
first  class  mentioned  he  may  be  inclined  to  ask  a  price  high 
enough  so  he  can  afford  to  reduce  it  as  much  as  he  thinks  neces- 
sary. The  buyer  in  this  case  is  placed  at  a  disadvantage,  and  it 
is  quite  likely  that  he  will  pay  more  than  market  value  for  the 
goods  he  buys. 

The  successful  buyer  studies  the  goods  he  buys.  He  should 
know  the  source  of  raw  material  from  which  they  are  manu- 

123 


124  MANAGEMENT   OF   DAIRY   PLANTS 

factured,  the  cost  of  such  material,  fluctuation  in  value  thereof, 
if  any,  cost  of  manufacturing,  cost  of  selling,  value  of  patent 
rights,  and  the  legitimate  profit  for  the  manufacturer  and 
dealer. 

The  general  market  value  of  an  article  is  ascertained  by  writ- 
ing to  various  firms  handling  that  particular  article.  Informa- 
tion thus  obtained  should  be  filed.  For  smaller  firms  a  letter 
file  will  be  satisfactory  and  the  letter  itself  may  be  filed  for  refer- 
ence. For  larger  firms  a  card  file  will  be  more  satisfactory.  The 
information  may  be  filed  alphabetically  and  for  creameries  the 
file  may  be  divided  into  two  sections,  the  first  dealing  with 
equipment  and  the  second  with  supplies.  For  example,  if  let- 
ters are  received  in  reference  to  the  cost  of  equipment  the  in- 
formation may  be  filed  under  the  general  names  of  such  equip- 
ment as  churns,  vats,  engines,  testers,  etc.,  and  alphabetically 
in  reference  to  firm  names. 

The  Buyer  Should  Know  the  Future  Value  of  the  Goods 
He  Is  to  Buy.  —  A  buyer  will  know  when  to  buy  and  how  much 
to  buy  if  he  has  a  fair  conception  of  the  future  value  of  the 
goods.  Consider,  for  example,  such  an  article  as  coal,  which 
fluctuates  more  or  less  in  value.  In  order  to  determine  the 
advisability  of  buying  several  months'  supply  at  a  time  the 
buyer  should  consider  the  principal  factors  which  may  affect 
the  future  value  of  the  coal.  Such  are  general  demand,  labor 
strikes,  transportation,  and  local  conditions.  Under  the  head 
of  transportation  should  be  considered  both  the  ability  of  the 
transportation  company  to  give  prompt  service  as  well  as  dif- 
ference in  rate  of  transportation  between  smaller  and  larger 
quantities.  Some  factories  are  so  located  that  they  can  take 
advantage  of  water  rate  at  certain  seasons  of  the  year,  while  at 
other  times  they  must  ship  by  rail.  Under  the  head  of  local 
conditions  should  be  considered  price  charged  by  local  dealers, 
cost  of  drayage,  amount  of  money  available,  interest  on  money, 
storage  facilities,  loss  of  fuel  value  of  coal,  etc. 

The  Buyer  Should  Know  the  Quality  and  the  Need  of  the 
Goods  He  Buys.  —  He  should  be  able  to  make  a  wise  choice  as 
to  quality  and  determine  whether  the  article  in  question  is 


PURCHASING   EQUIPMENT  AND    SUPPLIES  125 

absolutely  needed.  Goods  are  often  bought  because  they  are 
cheap  and  it  is  expected  they  will  be  needed  later  on.  A  few 
mistakes  of  this  nature  will  be  sufficient  to  reduce  the  annual 
dividend  several  per  cent.  In  order  that  the  buyer  may  know 
what  is  needed  it  is  well  for  him  to  keep  a  want  book  in  which 
to  write  down  articles  needed  so  that  they  may  be  ordered  to- 
gether with  the  next  regular  order. 

HOW  TO  BUY 

Contracting  for  a  Year's  Supply.  —  Most  creameries  buy 
supplies  in  small  lots,  placing  orders  for  them  with  various 
dealers.  For  that  reason  the  dealers  find  it  necessary  to  have 
their  traveling  solicitors  make  frequent  calls  in  order  to  be  as- 
sured of  their  share  of  the  business.  The  cost  of  such  calls  is 
naturally  charged  up  against  the  cost  of  selling  the  goods  and 
the  buyer  has  to  pay  the  expenses.  Many  of  such  expenses 
could  be  eliminated  if  creamery  managers  would  estimate  the 
amount  of  supplies  required  for  the  coming  year.  This  is  read- 
ily done,  especially  after  a  creamery  has  been  operated  for  a 
year  or  more,  as  its  requirements  will  vary  from  month  to  month 
much  as  they  did  during  the  previous  year.  A  buyer  should  be 
able  to  estimate  to  a  fair  degree  of  accuracy  if  the  business  will 
show  a  general  decrease  or  increase  for  the  year.  The  inventory 
record  of  supplies  for  the  previous  year  will  present  a  fair  esti- 
mate of  the  proportion  of  the  supplies  needed  for  each  month  of 
the  coming  year.  Therefore,  whenever  submitting  an  order  to 
dealers  for  bids  they  may  be  requested  to  submit  bids  under 
various  specified  conditions.  For  example,  a  buyer  might  re- 
quest that  dealers  submit  bids  on  the  entire  order  to  be  shipped 
in  one  shipment  at  a  definite  stated  time,  also  that  they  sub- 
mit bids  on  the  same  order  to  be  shipped  in  four  separate  ship- 
ments, each  shipment  to  consist  of  a  definite  stated  quantity 
which  will  naturally  vary  in  accordance  with  the  demand;  as  a 
third  bid  he  might  request  dealers  to  submit  bids  on  monthly 
shipments  in  amounts  as  stated  by  the  purchaser. 

In  determining  the  size  of  shipment  to  take  at  each  delivery 
a  buyer  should  consider  the  difference  in  cost,  amount  of  money 


126  MANAGEMENT   OF   DAIRY   PLANTS 

available,  rate  of  interest,  storage  facilities,  and  cost  of  trans- 
portation. 

In  submitting  the  order  to  the  various  dealers  for  quotations 
it  is  convenient  to  have  a  blank  for  that  purpose.  A  duplicate 
should  be  kept  in  the  office  for  reference.  After  the  quotations 
have  been  received  and  compared  the  successful  bidder  is  noti- 
fied that  his  quotation  has  been  accepted.  The  quotations  are 
filed  in  a  letter  file.  For  convenience  this  file  may  be  marked  as 
No.  i. 

Promptness  in  Making  Remittance  for  Goods  Purchased. 
—  This  is  an  important  factor  in  securing  the  lowest  rate  from 
the  dealer.  If  the  firm  buying  is  in  such  financial  circumstances 
that  it  can  pay  cash,  that  will  be  most  satisfactory  to  all  con- 
cerned, and  by  that  method  it  will  secure  the  lowest  quotation. 
A  business  firm  should  have  a  definite  time,  say  the  tenth  of 
each  month,  when  to  pay  all  bills,  and  it  is  business  policy  to 
arrange  for  having  all  checks  for  goods  purchased,  not  including 
material  purchases  which  are  usually  paid  oftener,  mailed 
promptly  on  that  date. 

Cash  Discount.  —  Some  firms  allow  a  special  cash  discount 
on  accounts  paid  within  a  time  designated  on  the  bill.  Such 
bills  should  always  be  paid  promptly,  as  the  discount  is  usually 
large  enough  to  be  profitable  to  the  buyer.  When  entering  such 
bills  in  the  purchase  journal,  the  labor  of  bookkeeping  is  reduced 
by  deducting  the  discount  on  the  bills  and  entering  the  actual 
amount  paid. 

RECORDS 

Receiving  Record.  —  The  person  who  receives  merchandise 
purchased,  whether  he  be  a  special  receiving  clerk  or  the  butter 
maker,  should  make  an  entry  thereof  in  a  book  kept  for  that 
purpose.  This  book  is  known  as  "the  receiving  book."  This 
record  should  state  when  goods  were  received,  name  of  shipper, 
kind  of  goods,  amount,  and  condition  in  which  goods  were  re- 
ceived. In  larger  creameries  the  manager  will  often  furnish  the 
receiving  clerk  with  a  memorandum  of  kind  of  goods  purchased 
and  from  whom  purchased.  On  this  memorandum,  however, 


PURCHASING   EQUIPMENT   AND   SUPPLIES  127 

he  should  not  include  the  quantity  ordered,  as  by  receiving  this 
information  the  receiving  clerk  might  neglect  to  check  it  when 
received.  If  the  goods  are  short  the  factory  is  notified  at  once. 
If  damaged  in  transportation  the  railroad  inspector  is  noti- 
fied and  a  claim  is  filed  for  amount  of  damage. 

Filing  of  Invoices  and  Bills.  —  The  invoice  for  goods  ordered 
is  usually  received  before  the  goods  arrive.  Upon  receipt 
thereof  the  invoice  is  checked  against  the  order  filed  in  file 
No.  i,  and  when  the  goods  are  received  the  invoice  is  checked 
against  the  receiving  book;  the  extensions  are  also  checked  and, 
if  found  to  be  correct,  the  invoice  is  pinned  to  the  order  and 
returned  to  file  No.  i.  These  items  should  be  filed  in  alpha- 
betical order,  according  to  firm  names,  and  each  firm's  invoices 
should  be  filed  in  order  of  dates. 

At  the  close  of  each  month  the  various  firms  usually  mail 
bills.  If  not,  bills  should  be  called  for.  Upon  receipt  of  the  bill 
it  is  checked  against  the  invoices  in  file  No.  i  and  if  found  ror- 
rect  it  is  marked  "O.  K.,"  pinned  together  with  the  various  in- 
voices, and  filed  alphabetically  in  a  similar  file  marked  "No.  2." 
It  is  now  ready  for  payment  and  a  check,  together  with 
the  bill,  is  mailed  to  the  creditor.  A  receipted  bill  is  returned 
to  the  purchaser.  This  is  pinned  to  the  invoices  and  filed 
for  future  reference.  A  similar  file  may  be  used,  but  it 
should  be  marked,  giving  the  period  of  time  covered  by  the  bills 
it  contains.  A  large  creamery  may  use  a  separate  file  for  each 
month  and  this  file  is  then  marked  with  the  name  of  the  month 
and  the  year.  A  smaller  creamery  may  be  able  to  file  in  one  file 
all  its  bills  for  an  entire  year;  the  file  is  then  marked  with  that 
year. 

Supply  Room  Records.  —  In  the  smaller  plants  the  butter 
maker  is  in  full  charge  of  the  supply  room.  It  speaks  well  for  a 
butter  maker  if  he  keeps  his  supply  room  as  it  should  be  kept, 
with  shelves  and  cupboards  around  the  walls  for  the  various 
articles,  such  as  parchment  papers,  butter  color,  tub  tins,  etc. 
with  tubs,  barrels,  and  boxes  piled  in  systematic  order.  There 
should  be  a  place  for  everything  and  everything  in  its  place.  By 
keeping  the  supply  room  in  order  less  goods  will  spoil,  less  work 


128  MANAGEMENT   OF  DAIRY  PLANTS 

will  be  required  in  taking  the  monthly  inventories,  and  less  room 
will  be  required  for  holding  the  supplies. 

1.  Receiving  Goods  from  Supply  Storage  Room.  — The  larger 
creameries  often  have  a  special  stock  clerk  who  receives  the 
supplies  from  the  receiving  department,  and  places  them  in  the 
supply  room.    The  various  departments  receive  their  supplies 
from  this  stock  clerk  on  written  orders  signed  by  the  foreman  of 
the  department. 

Form  XII  may  be  considered  as  a  convenient  blank  for  such 
orders. 

FORM  XII 
CREAMERY  ORDER  FOR  SUPPLIES 

No.  720. 

Date 

Please  deliver  to  our  department  the  following  supplies. 
4,000  butter  wrappers. 

Butter  Mfg.  Dept., 

(Signed)         J.  BROWN. 

These  blanks  may  be  put  up  in  pads  about  4  inches  by  5 
inches  in  size.  They  may  or  may  not  be  written  in  duplicate. 

2.  Monthly  Inventory   Record  of  Supplies.  —  The  monthly 
inventory  record  of  supplies  on  hand  is  of  value:  First,  for 
determining  the  amount  of  supplies  used  during  the  month; 
second,  as  a  guide  for  placing  orders  for  supplies;  third,  as  a 
check  record  on  waste  in  supplies,  and  fourth,  as  a  record  in 
case  of  fire  loss. 

Form  'XIII  represents  an  inventory  blank  which  may  be 
made  to  cover  the  entire  year.  This  blank  is  self-explanatory. 
The  purchases  are  entered  from  the  purchase  journal.  The 
amount  used  during  the  month  is  equal  to  the  amount  on  hand 
on  the  morning  of  the  first  day  of  the  month,  plus  purchases 
made  during  the  month,  less  amount  on  hand  on  the  morning  of 
the  first  day  of  the  following  month. 


PURCHASING  EQUIPMENT  AND   SUPPLIES 


129 


FORM  XIII 

INVENTORY  OF  SUPPLIES 


Article 

January 

February 

March 

On  hand 

Purchased 

Used 

On  hand 

Pur- 
chased 

Used 

On 

hand 

Pur- 
chased 

J/A 

1 

Tons 
20 

3 

1 

3 

1 

a 

1 

1 

1 

3 

^ 

1 

o 

i 

g 

i 

» 

Qj 

o 

o 

X 

O 

Coal  

$60.00 

30 

$90.00 

25 

$75.00 

25 

$75.00 



Butter  tubs.  . 

150 

39.00 

600 

156.00 

500 

130.00 

250 

65.00 

- 

- 

- 

Butter  boxes. 

Butter 
wrappers.  . 



- 

- 

Butter  salt  .  . 

In  order  to  facilitate  the  work  of  taking  the  inventory  a 
record,  such  as  Form  XIV,  will  be  of  much  value.  This  blank 
is  fastened  to  the  shelves  on  which  the  supplies  are  kept.  When- 
ever the  butter  maker  removes  supplies  an  entry  is  made  on 
this  record.  In  the  case  of  a  stock  clerk  the  total  amounts  of 
supplies  delivered  in  accordance  with  his  order  blanks  are 
entered  daily  or  weekly  and  at  the  close  of  the  month  these 
records  contain  full  information  in  reference  to  the  amount  of 
supplies  on  hand.  By  that  system  one  annual  inventory  count 
of  the  supplies  on  hand  is  usually  found  to  be  sufficient. 


130 


MANAGEMENT   OF   DAIRY   PLANTS 


FORM   XIV 

KIND    or    SUPPLIES 


77 

DATE 

DEPT       TO       WMICM     CHARGED 

DELIVERED 

RECEIVED 

JW  / 

£77^,       "sLt2s^2<3Z 

0.000 

4 

UJ-^£&j2/?*~'      £3L&O^2/71~&??^&s72^~ 

5OOO 

0 

(f-^L^^^U2^i£^ 

100,000 

d 

to^cts£&^'    &£&fO&sri£^72£/rz<t' 

6,OOO 

15 

Outer    Ctv*3^r2^ 

9.OOO 

& 

J0-U.&J2'?1-'     c£gJ3<2/?l&772<2/?^' 

/0,000 

3e£   / 

OT?,     ~fu3/r2<3^ 

7(3,000 

CHAPTER  X 
COST  OF  POWER 

UNTIL  recently  only  steam  power  has  been  considered  practi- 
cal for  the  creamery.  It  is  now  recognized  that  the  gasoline 
engine  and  the  electric  motor  may  also  be  used  to  advantage 
in  our  modern  plants. 

STEAM  POWER 

Fuel.  —  The  power  is  produced  from  fuel.  The  value  of  the 
fuel  is  measured  by  the  heat  units  which  its  combustion  will 
generate.  The  combustible  portion  of  the  fuel  is  the  part  of  it 
which  burns;  other  ingredients  as  ash  remain  and  are  without 
fuel  value,  the  ash  varying  from  2  to  36  per  cent  in  different 
fuels. 

Coal  is  the  most  important  fuel  known.  It  is  used  as  a  fuel 
in  most  dairy  establishments.  It  has  been  estimated 1  that  on  an 
average  one  pound  of  coal  is  equal  for  steam-making  purposes 
to  two  pounds  of  dry  peat,  two  and  one  fourth  to  two  and  one 
half  pounds  of  dry  wood,  and  to  three  and  one  fourth  to  three 
and  three  fourths  pounds  of  wheat  or  barley  straw.  Table  III 
by  the  same  author  gives  the  chemical  composition  of  several 
typical  kinds  of  solid  fuels. 

1  Steam,  its  Generation  and  Use. 


132 


MANAGEMENT   OF   DAIRY   PLANTS 


TABLE  III 
COMPOSITION  OF  FUELS 


Mois- 
ture 

Carbon 

Hydro- 
gen 

Oxygen 

Nitro- 
gen 

Sul- 
phur 

Ash 

Wood,  per- 

, 

fectly  dry  .  . 

o 

50 

6.0 

41-5 

i  .0 

i-5 

Wood,  ordi- 

nary. 

20.  o 

AO 

A     8 

o  •?     2 

0.8 

Peat  

30.0 

T-W 
4O.6 

£\.  .  U 
4.2 

Oo  •  * 
21.7 

i 

3-5 

Charcoal  

12.  O 

84 

1  .  O 

o 

3r\ 

Straw.  . 

16.0 

l6 

tr   o 

38.O 

.\J 
5rt 

O^ 

0  •  w 

.O 

Coal,  an- 

thracite. .  .  . 

I.O 

86 

1  .0 

I.O 

o-S 

o-5 

IO.O 

Coal,  semi- 

bituminous 

I    O 

84 

4.2 

3-4 

0.8 

0.6 

6.0 

Coal,  bitu- 

minous, 

Pittsburgh  . 

1.4 

75 

5-o 

8.0 

i  .0 

1.6 

8.0 

Coal,  bitu- 

minous, 

Hocking 

Valley,  O... 

7.5 

67 

4.8 

IO.O 

I.  2 

i-5 

8.0 

Coal,  bitu- 

\ 

minous, 

Illinois  

II.  O 

56 

5-o 

II.  0 

I.O 

3-o 

13.0 

Brown  coal, 

Pacific 

coast  

16.8 

CO 

3  8 

n  6 

O   O 

T  -2       2 

Lignite, 

ow 

O  '  w 

•••o  •  ** 

sy.y 

^d  '   & 

Pacific 

coast  

14.0 

crc 

4.  o 

ISO 

I  .  O 

I  .  O 

So 

oo 

•*•»)  •  w 

.  w 

Heating  Value  of  Fuel.  —  The  amount  of  heat  generated  by 
combustion  of  carbon,  hydrogen  and  sulphur  is  as  follows: 
Carbon,  14,50x3  heat  units  per  pound;  hydrogen,  62,000  heat 
units  per  pound;  sulphur,  4,000  heat  units  per  pound. 

Carbon  and  hydrogen  are  the  only  elements  considered  to 


COST  OF  POWER  133 

possess  practical  fuel  value.  The  heating  power  of  fuels  con- 
taining carbon  and  hydrogen  is  approximately  expressed  by  the 
formula: 


A  manufacturer  purchasing  a  quantity  of  fuel  will  do  well 
in  having  a  sample  thereof  subjected  to  chemical  analysis,  and 
the  heat  value  is  thus  readily  determined.  Take  as  an  illustra- 
tion the  analysis  of  Hocking  Valley  Coal,  Table  III,  and  the 
heat  value  is  as  follows: 

h  =  145  (67  +  4.28  X  4.8)  =  12,694  B.  T.  U.  per  pound. 

Heat  Required  for  Producing  Steam.  —  Water  at  212°  F. 
takes  up  966  B.  T.  U.  when  converted  into  steam  of  the  same 
temperature.  Therefore  if  one  pound  of  coal  produces  12,694 
heat  units  then  a  pound  of  such  coal  will  produce  12,694/966  or 
13.14  pounds  of  steam  of  212°  F.  from  water  of  the  same  tem- 
perature. The  amount  of  heat  thus  required  to  produce  a 
pound  of  steam  is  known  as  the  latent  heat  of  vaporization. 

In  practice  more  heat  is  required  for  producing  a  pound  of 
steam,  as  the  water  that  is  converted  into  steam  is  usually  at 
a  temperature  much  below  212°  F.  Possibly  60°  F.  will  come 
nearer  to  the  temperature  of  the  boiler  feed  water  as  used  in 
most  creameries.  Furthermore  the  steam  in  the  boiler  is  heated 
to  a  temperature  exceeding  that  of  212°  F.  Consider  that  a 
creamery  is  using  boiler  feed  water  at  60°  F.  and  carrying  a 
steam-gauge  pressure  of  80  pounds,  it  will  then  require  1,153  hea-t 
units  for  each  pound  of  steam  produced,  or  one  pound  of  the 

above-mentioned  coal  will  produce  —  '-^—  or  1  1  pounds  steam. 

1,153 

Losses  of  Heat  When  Producing  Steam.  —  If  there  were  no 
losses  to  consider  it  would  be  comparatively  easy  to  determine 
the  amount  of  fuel  of  a  known  composition  required  for  produc- 
ing a  definite  amount  of  steam.  It  will  be  impossible  even  for 
the  most  careful  engineer  to  reach  the  theoretical  efficiency.  It 
should  be  possible,  however,  for  many  engineers  to  materially 

1  Siebel's  Compend.  of  Mechanical  Refrigeration  and  Engineering,  19  n,  p.  96. 


134  MANAGEMENT   OF   DAIRY  PLANTS 

reduce  many  fuel  losses  in  the  boiler  room  and  often  throughout 
the  entire  factory. 

Creamery  boiler  losses  in  a  small  creamery  are  estimated  by 
Bowen  1  as  averaging  about  50  per  cent  of  the  theoretical  effi- 
ciency. For  a  steam  plant  operated  under  most  economical 
conditions  the  following  estimate  is  furnished: 

Loss  due  to  unconsumed  particles  of  coal  falling  through  grate 2% 

Loss  due  to  incomplete  combustion 2% 

Loss  due  to  heat  being  carried  away  in  stack  gases 23% 

Radiation  and  other  losses 8% 


Total  boiler  losses 35% 

Such  losses  will  further  reduce  the  amount  of  steam  pro- 
duced from  a  pound  of  coal,  so  instead  of  having  n  pounds  of 
steam  produced  this  figure  is  reduced  to 

ii  X  — —  or  7.15  pounds  of  steam,  which  is  being  finally  pro- 
100 

duced  from  a  pound  of  coal  when  considering  the  second  esti- 
mate. The  theoretical  efficiency  obtained  from  the  coal  in  this 
case  is  65  per  cent.  Under  the  small  creamery  conditions  where 
we  figure  on  a  50  per  cent  efficiency  the  amount  of  steam  pro- 
duced from  a  pound  of  coal  is  n  X  -^—  =  5-5  pounds. 

100 

Losses  of  Heat  When  Converting  It  Into  Mechanical 
Work.  —  Heat  is  converted  into  power  through  the  steam  en- 
gine. The  amount  of  power  produced  is  spoken  of  in  terms  of 
horse  power.  One  horse  power  corresponds  to  33,000  foot 
pounds  2  per  minute;  778  foot  pounds  correspond  to  one  British 
thermal  unit.  The  amount  of  heat  therefore  required  to  pro- 
duce one  horse-power  hour  is  equal  to 

33,000  X  60  _  2>545  R  T  v 

It  is  estimated  that  a  good  engine  will  require  from  15  to  30 

1  Circular  209,  B.  A.  I.,  1913. 

2  A  foot  pound  is  the  power  required  to  raise  one  pound  one  foot  per  minute. 


COST   OF   POWER  135 

pounds  of  steam  per  horse-power  hour.  It  is  to  be  assumed  that 
the  average  creamery  engine  will  be  operated  at  a  greater  loss  of 
steam  and  it  may  be  fair  to  estimate  that  it  will  require  40 
pounds  of  steam  per  horse-power  hour.  The  heat  required  to 
produce  that  amount  of  steam  at  80  pounds  gauge- pressure 
from  water  of  60°  F.  is  equal  to  .1,153  X  40  =  46,120  B.  T.  U. 
The  per  cent  of  the  heat  converted  into  mechanical  work  is 
equal  to 

2,545  X  ioo 

-  =  ex  per  cent. 

46,T20 

Methods  by  Which  Heat  Losses  Are  Reduced.  —  The  ex- 
haust steam  from  the  engine  contains  much  heat.  By  saving  at 
least  a  part  thereof,  it  will  result  in  a  reduction  of  amount  of 
fuel  required.  The  exhaust  steam  may  be  used  for  heating  the 
boiler  feed  water  and  wash  water,  for  pasteurization,  for  heating 
the  building,  etc.  The  losses  are  furthermore  reduced  by  proper 
firing,  by  keeping  the  boiler  clean,  and  by  keeping  boiler  and 
steam  pipes  properly  insulated. 

i.  Value  of  Exhaust  Steam  for  Heating  the  Feed  Water.  —  It 
has  been  stated  that  it  requires  1,153  B.  T.  U.  of  heat  for  pro- 
ducing a  pound  of  steam,  So  pounds  of  gauge  pressure,  from 
water  at  60°  F.  It  should  be  possible  to  heat  the  water  by 
exhaust  steam  to  200°  F.  before  the  water  enters  the  boiler. 
Water  of  200°  F.  when  converted  into  steam  of  80  pounds 
pressure  will  require  only  1,153  ~~  I4°  =  I-OI3  B.  T.  U.  The 
saving  of  heat  in  this  instance  is 

140  X  ioo 

-  =  12.14  per  cent. 

i.i53 

Table  IV 1  gives  the  percentage  of  saving  in  fuel  by  pre- 
heating the  boiler  feed  water  from  various  initial  temperatures 
to  different  final  temperatures. 

Table  V  1  gives  the  annual  cash  saving  of  fuel  on  a  40 
horse-power  boiler  by  heating  the  feed  water  from  various 
initial  temperatures  to  a  final  temperature  of  200°  F. 

1  Circular  209,  B.  A.  I.,  1913. 


136 


MANAGEMENT   OF  DAIRY   PLANTS 


,^OOvt^»^-oovO""5**r'>'-|<sr-)'«— iO 


•  *£  r<5  <*5  r^Vi  «S  *-<  *•«  »H  O  O  ON  ON  O\ 


•  <+i  CN  oi  ts  '-H  *H  O  O  O  ON  Ov  00  00  00 


Iw 


£    >S 


^VOOOO»-l-H<NeNCS»-lT-lO001O'!t* 


I 
I 


"o 

2 


I 
i 


•3, 

g 


3 . 
ws 


b 

I*J 

b 

cs 

b 


Vi'- 


COST  OF  POWER 


137 


B| 

fa 

JQ^®^8^®^8 

^^ 
C^fe 
H  0 

1 

aasasaass 

3§ 

fa 

oo^^^vooooo 

y 

1 

^mf 

^vd 

^g 

11 

| 

b 

vOl/}^FOCN«-t®O\OO 

|i 

gl 

SQO 
Hg 

*? 

x 

fa 
b 

>J  ° 
H  ^ 

SQ 

e 
I 

fa 

IKKHss 

%~ 

•^ 

•^ 

«^ 

0^ 

'•2 

II 
^o 

>-s 

fa 
b 

00 

s«§§g«ssji 

> 
w 

CQ 

R 

fa  w 

M 

fa 

s 

oo  oo  oo  t-  1^.  »—  vo  «r>  10 

<M« 

8^ 

H   y 

fa 

S5SS2S3SSS 

X   ^ 

b 

f£«4«**4iM«Hei«ei'«e>4 

!>  cn 

§  o 

r». 

BY  HEATING  ] 
SSUMING  A  40 

3WER  HOUR) 

2,000  pounds) 

So  ^ 
w 

& 

"s 

C/0  fc  O 

V. 

to 

a 

3e- 

«  etf  u 

1 

r 

^ 

696 

^* 

pPnPQ 

^^!:-«^! 

138  MANAGEMENT  OF  DAIRY  PLANTS 

Heating  of  feed  water  may  be  done  by  two  methods  —  either 
by  exhaust  steam  or  by  chimney  gasses.  The  heater  used  for 
the  latter  is  known  as  "  Economizer. "  It  is  the  former  method 
which  will  be  most  practical  for  the  average  creamery.  There 
are  two  objects  for  heating  the  feed  water:  First,  there  is  a  sav- 
ing in  heat  when  heating  the  feed  water  by  exhaust  steam,  and 
second,  the  water  is  heated  to  such  a  temperature  so  that  it 
will  not  injure  the  boiler  as  will  water  of  a  low  temperature. 

When  using  water  heaters,  the  best  oil  traps  obtainable 
should  be  used,  as  the  oil,  if  entering  the  boiler,  will  mix  with 
the  solids  of  the  water  and  finally  adhere  to  the  sides  of  the 
boiler,  which  will  naturally  lessen  the  efficiency  of  the  boiler. 
It  is  to  be  preferred  that  the  steam  pass  through  the  heater 
through  a  system  of  coils,  thus  eliminating  the  steam  from  the 
water  in  the  tank.  Fig.  23  l  illustrates  a  plant  with  water 
heating  apparatus. 

2.  Firing.  —  The  method  employed  in  firing  the  coal  may 
involve  big  losses.     The*  ability  of  being  able  to  obtain  the 
greatest  amount  of  heat  from  the  fuel  burned  lies  in  the  ability 
of  the  fireman  to  supply  the  right  amount  of  air  to  the  fuel  under 
the  right  conditions.    Only  such  an  amount  of  oxygen  should  be 
supplied  as  is  necessary  to  combine  with  the  combustible  por- 
tions of  the  coal.    The  coal  should  be  added  in  small  quantities 
at  a  time;  it  should  be  spread  evenly  over  the  grate.    The  fire 
should  have  a  thickness  of  from  three  inches  to  six  inches;  it 
should  be  clean  and  should  leave  no  burned-out  places  or  holes. 

Proper  installation  of  the  boiler  is  of  importance  in  order  to 
obtain  the  highest  efficiency.  It  is  estimated  that  it  will  require 
from  one  third  to  one  half  square  foot  of  grate  surface  for  each 
horse  power  of  a  horizontal  tubular  boiler.  Complete  plans  and 
specifications  for  installation  of  the  boiler  and  for  building  the 
chimney  are  furnished  by  the  manufacturer  of  the  boiler  and  the 
installation  should  be  made  and  retained  in  accordance  there- 
with. 

3.  Keeping  Boiler  Clean. — The  efficiency  of  the  boiler  is 
greatly  reduced  if  the  exterior  of  the  tubes  is  covered  with  soot 

1  Circular  209,  B.  A.  I.,  1913. 


•43 
«J 
o 


.21 


140  MANAGEMENT   OF   DAIRY  PLANTS 

or  the  interior  of  the  boiler  with  scale.  The  exterior  of  the  tubes 
is  readily  cleaned  and  should  be  done  daily.  The  formation  of 
scale  on  the  inside  of  the  boiler  is  more  difficult  to  prevent.  The 
most  common  impurities  in  water  causing  formation  of  scales 
are  sulphates  and  chlorides  of  lime  and  magnesia  and  bicarbon- 
ate of  magnesia  and  lime;  also  iron  silica  and  other  ingredients 
are  found.  It  is  recommended  to  use  caustic  soda  in  the  propor- 
tion of  one  fourth  pound  per  horse  power;  the  boiler  is  then 
steamed  for  a  day  before  cleaning.  The  scales  become  soft 
and  are  readily  removed.  Soda  ash  or  carbonate  of  soda  will 
decompose  sulphates  and  chlorides  of  lime  and  magnesia. 

4.  Insulation  of  Boiler  and  Steam  Pipes.  —  Losses  of  steam 
from  boiler,  pipes,  and  engine  due  to  radiation  and  leakage  are 
estimated  variously  by  writers.  Such  losses  may  be  estimated 
for  the  average  creamery  at  10  per  cent  of  the  steam  produced. 
This  loss  may  be  reduced  by  having  boiler  and  steam  pipes 
properly  insulated  and  by  preventing  leakage  from  pipes  and 
valves. 

Cost  of  Power  When  Operating  a  Steam  Engine.  —  Con- 
sider that  i  pound  of  coal  produces  5.5  pounds  of  steam  and 
that  the  cost  of  such  coal  is  $5.50  per  ton  of  2,000  pounds.  If  40 
pounds  of  steam  are  used  for  a  horse  power  per  hour  then  the 

amount  of  coal  required  is  —  or  7.27  pounds.  The  cost  of  a 
horse  power  per  hour  is  equivalent  to. 

7.27  X  550 

/    '       ^    or  2  cents 

2.00O 


GASOLINE  FOR  POWER 

The  gasoline  engines  have  during  recent  years  been  installed 
in  several  creameries.  The  principal  advantages  claimed  for 
them  are: 

1.  Economical  in  cost  of  fuel  and  attendance. 

2.  Automatic  in  operation. 


COST   OF   POWER  14! 

3.  For  intermittent  service  —  no  expense  when  not  in  oper- 
ation. 

4.  No  water  is  used  except  for  the  cooling  tank,  and  this 
water  may  be  used  over  and  over  again. 

5.  It  is  safe  and  easy  to  handle,  and  no  danger  from  fire. 
As  disadvantages  might  be  considered: 

1.  Subject  to  great  wear  and  tear. 

2.  The  original  cost  of  a  gasoline  engine  is  greater  than  that 
of  a  steam  engine. 

3.  The  strong  odor  from  the  exhaust.    However,  this  may  be 
fairly  well  conducted  from  the  building;  nevertheless  it  is  most 
satisfactory  that  the  gasoline  engine  is  placed  in  a  separate 
room  which  can  be  thoroughly  ventilated. 

Cost  of  Operation.  —  A  gasoline  engine  will  consume  about 
one  tenth  of  a  gallon  of  gasoline  per  horse  power  per  hour.  If 
the  cost  of  gasoline  is  24  cents  per  gallon  then  the  cost  per 
horse-power  hour  is  2.4  cents. 

KEROSENE  FOR  POWER 

The  kerosene  engine  may  be  operated  either  with  kerosene 
or  gasoline.  As  advantages  and  disadvantages  for  this  machine 
the  same  might  be  mentioned  as  enumerated  under  the  head  of 
gasoline  engines.  The  odors  from  the  kerosene  engine  are 
somewhat  stronger,  the  original  cost  about  25  per  cent  higher, 
but  the  cost  of  operation  with  kerosene  is  much  less. 

Cost  of  Operation.  —  About  one  eighth  of  a  gallon  of  kero- 
sene is  required  for  producing  one  horse-power  hour.  If  the 
cost  of  kerosene  is  1 2  cents  per  gallon  then  the  cost  per  horse- 
power is  1.5  cent. 

ELECTRIC  POWER 

Electric  power  is  measured  in  kilowatts  (K.  W.).  A  watt  is 
1/746  of  a  horse  power  and  a  kilowatt  is  1,000  watts  or  i  1/3 
horse  power.  A  small  amount  of  power  is  lost  due  to  friction 
in  the  bearings  and  to  heating  of  wires,  therefore  a  motor  re- 
ceiving a  kilowatt  power  will  transmit  slightly  less  than  that 
amount. 


142  MANAGEMENT   OF   DAIRY  PLANTS 

Cost  of  Operation.  —  If  the  cost  per  kilowatt  hour  is  5  cents, 
then  the  cost  per  horse  power  is  3  3/4  cents. 

Power  is  often  saved  when  using  electric  power  by  installing 
smaller  units,  that  is,  using  separate  motors  for  the  various 
machines  or  departments  and  motors  of  the  proper  size.  This 
system  prevents  the  use  of  a  15  to  25  horse-power  engine  for 
yielding  one  or  two  horse  power  which  is  usually  sufficient  for 
stirring  the  cream  or  for  pumping  water.  The  system  of  indi- 
vidual motors  furthermore  reduces  the  amount  of  shafting  and 
as  a  result  the  amount  of  loss  due  to  friction. 


CHAPTER  XI 
PASTEURIZATION 

PASTEURIZATION  should  be  considered  as  one  of  the  necessary 
expenses  in  the  modern  factory  of  dairy  products,  for  as  long  as 
the  inspection  of  individual  dairies  is  impossible  it  will  not  be 
safe  to  convert  raw  products  obtained  from  such  dairies  into 
finished  products  to  be  offered  for  sale  unless  they  have  been 
subjected  to  pasteurization.  Even  though  the  dairy  farm  from 
which  the  cream  is  delivered  is  under  inspection,  it  is  at  times 
possible  that  germs  causing  disease  may  also  there  gain  entrance 
into  the  milk  unbeknown  to  the  producer.  It  is  therefore 
generally  recognized  that  if  an  absolutely  safe  product  is  pro- 
duced it  should  be  made  from  material  which  has  been  pasteur- 
ized to  a  temperature  of  not  less  than  140°  F.  for  twenty  minutes 
or  longer  or  to  a  temperature  of  not  less  than  180°  F.  when  ex- 
posed to  flash  heat.  Pasteurization  also  improves  the  immedi- 
ate quality  as  well  as  the  keeping  quality  of  the  butter  and 
causes  a  more  uniform  product  to  be  produced. 

A.  COST  OF  PASTEURIZATION 

The  expenses  incurred  by  pasteurization  may  conveniently 
be  divided  into  three  groups:  i,  cost  of  steam  required  for 
heating;  2,  cost  of  cooling  water;  3,  cost  of  labor  and  equipment. 

I.  Cost  of  Steam  Required  for  Heating.  —  Theoretically  the 
amount  of  heat  obtained  from  a  pound  of  steam  at  a  definite 
gauge  pressure  is  a  known  quantity,  but  in  practice  it  is  not 
possible  to  obtain  a  hundred  per  cent  of  the  theoretical  effi- 
ciency. Losses  sustained  in  transferring  the  heat  to  milk  or 
cream  to  be  pasteurized  are  primarily  due  to  radiation  of  heat 
from  the  steam  pipes  and  pasteurizer.  It  is  therefore  economy 
to  have  the  steam  pipes  leading  from  boiler  to  pasteurizer  as 
well  as  the  pasteurizer  itself  properly  insulated  so  as  to  reduce 
such  radiation  to  a  minimum. 

143 


144  MANAGEMENT   OF   DAIRY   PLANTS 

It  has  been  the  experience  of  the  writer  that  under  ordinary 
creamery  conditions  when  a  steam-gauge  pressure  of  from  40 
to  80  pounds  is  maintained  it  is  reasonably  safe  to  figure  that  a 
pound  of  steam  will  yield  about  900  B.  T.  U.  of  heat.  From 
this  estimated  heat  value  of  steam  the  amount  of  steam  re- 
quired for  pasteurization  may  be  quite  accurately  determined. 
As  the  difference  in  amount  of  heat  required  to  raise  a  pound  of 
water  one  degree  on  different  parts  of  the  thermometer  scale  is 
very  slight,  when  considering  the  range  of  temperatures  made 
use  of  in  pasteurization,  it  will  be  safe  in  this  connection  to 
consider  a  B.  T.  U.  as  the  amount  of  heat  required  to  heat  one 
pound  of  water  any  one  degree  on  the  Fahrenheit  thermometer 
scale. 

Example:  How  much  steam  is  required  to  heat  10,000 
pounds  of  milk  from  60°  F.  to  185°  F.? 

10,000  X  .94  l  X  (185  —  60) 

Answer:    -  -  =  1,305.6   pounds   of 

900 

steam. 

1.  Method  by  Which  to  Determine  the  Heating  Value  of  Steam. 
—  More  accurate  determination  of  steam  required  for  heating 
may  be  obtained  by  determining  the  heating  value  of  the 
steam.     This  determination  may  be  made  as  follows:  Admit 
live  steam  into  a  known  amount  of  water  held  in  an  insulated 
container;  weigh  the  water  after  it  has  been  heated  to  the  de- 
sired temperature  —  the  increase  in  weight  is  due  to  amount  of 
steam  condensed. 

Example:  80  pounds  of  water  are  heated  from  60°  F.  to  180° 
F.  The  water  has  increased  in  weight  10  pounds.  How  much 
heat  has  been  obtained  from  a  pound  of  steam? 

Answer:  Let  y  stand  for  amount  of  latent  heat  obtained 
from  each  pound  of  condensed  steam  used.  Then, 

10  \y+  (212  -  180)]  =  80  (180—  60);  y  =  928  B.  T.  U. 

The  total  amount  of  heat  obtained  from  each  pound  of  steam 
used  is  equal  to  928  +  32  =  960  B.  T.  U. 

2.  Weighing  the  Condensed  Steam.  —  The  amount  of  steam 
required  for  doing  a  definite  amount  of  work  is  determined  in 

1  Specific  heat  of  milk. 


PASTEURIZATION 


145 


the  most  practical  manner  by  collecting  the  condensed  steam 
and  weighing  it.  This  is  readily  collected  from  such  types  of 
pasteurizers  as  the  continuous  machines.  It  becomes  more 
difficult  when  a  cream  ripener  is  used  as  a  pasteurizer.  How- 
ever, even  then  it  can  be  determined  with  a  reasonable  degree  of 
accuracy.  The  condensed  steam  is  secured  through  the  cir- 
culating water  overflow  pipe.  The  circulating  tank  for  the  vat 
is  first  filled  with  water  until  it  overflows.  The  agitator  should 
be  in  motion  for  some  time  before  pasteurization  begins  so  the 
coil  becomes  properly  filled.  The  amount  of  circulating  water 
required  may  be  determined  once  for  all  by  weighing  it  into  the 
tank.  After  the  circulating  water  has  become  constant  the 
steam  may  be  admitted;  however,  the  steam  line  should  be 
equipped  with  a  drain  valve  and  the  condensed  water  already 
in  the  pipe  should  be  drained  out  and  not  be  admitted  into  the 
circulating  water.  The  amount  of  steam  required  for  pasteur- 
ization is  equal  to  the  overflow  minus  the  amount  of  the  over- 
flow due  to  expansion  of  the  circulating  water. 

TABLE  VI 

DENSITIES  AND  SPECIFIC  VOLUMES  OF  WATER  1 


Temp. 

Grams  per 
cubic  centi- 
meter 

Cubic  centi- 
meters per 
gram 

Temp. 

Grams  per 
cubic  centi- 
meter 

Cubic  centi- 
meters per 
gram 

o°C. 

0.999874 

1.000127 

55 

0.98579 

1.01442 

5 

0.999992 

i  .000008 

60 

0.98331 

1.01697 

10 

0.999736 

i  .000265 

65 

0.98067 

1.01871 

15 

0.999143 

1.000857 

7o 

0.97790 

1.02260 

20 

0.998252 

1.001751 

75 

0-97495 

.02569 

25 

0.997098 

1.002911 

80 

0.97191 

.02890 

30 

0-995705 

1.004314 

85 

0.96876 

.03224 

35 

0.994098 

i  .  005936 

90 

0.96550 

•03574 

40 

0.99233 

1.00773 

95 

0.96212 

•03938 

45 

0.99035 

1.00974 

TOO 

0.95863 

•04315 

50 

0.98813 

I  .OI2OI 

1  This  table  by  Thiessen,  Schell,  and  Marek  is  taken  from  "Mechanics  and  Heat," 
by  VVm.  S.  Franklin  and  Barry  MacNutt. 


146  MANAGEMENT   OF  DAIRY  PLANTS 

Example:  State  amount  of  steam  used  for  pasteurizing  a 
definite  amount  of  cream  in  a  ripener  when  the  circulating 
water  weighs  428  pounds  at  50°  F.  (10°  C.).  Final  temperature 
of  circulating  water  being  158°  F.  (70°  C.),  and  amount  of  over- 
flow being  equal  to  236  pounds. 

Answer : 

The  amount,  by  weight,  of  circulating  water  overflowing  by 
being  heated  from  50°  F.  to  158°  F.  is 

428X1.02260—  1.00026^ 

-  =  9-35  pounds. 
1.02260 

Amount  of  steam  used  for  pasteurization  is 

236  —  9.35  =  226.65  pounds. 

3.  Difference  in  Amount  of  Steam  Used  for  the  Continuous  or 
Flash  Method  and  the  Holding  Method  of  Pasteurization.  —  By 
the  continuous  method  of  pasteurization  the  milk  or  cream 
is  heated  to  a  higher  temperature,  about  180°  F.,  and  the  con- 
densed steam  is  also  discharged  at  a  higher  temperature,  usually 
at  from  200°  F.  to  210°  F.  When  pasteurizing  by  the  hold- 
ing method  the  cream  is  heated  to  about  145°  F.  and  the 
condensed  steam  is  discharged  at  a  temperature  of  about 
150°  to  1 60°  F.  This  saving  in  heat  by  the  latter  method  is 
somewhat  reduced,  due  to  the  fact  that  a  certain  amount  of 
circulating  water  has  to  be  heated  most  often  from  a  tempera- 
ture of  about  50°  F.  to  about  150°  F.  The  additional  amount 
of  steam  required  for  heating  the  circulating  water  is  reduced 
per  pound  of  butter  fat  as  the  amount  of  milk  or  cream  in  the 
vat  is  increased.  Therefore  when  pasteurizing  in  the  vat  the 
steam  required  for  pasteurization  per  pound  of  butter  fat  is 
greater  when  the  vat  is  only  half  full  of  cream  than  when  it  is 
full.  The  following  examples  illustrate  fairly  well  the  amount 
of  steam  required  for  pasteurization  under  practical  conditions. 

Example: 

i.  Determine  amount  of  steam  required  per  pound  of  butter 
fat  when  pasteurizing  2,000  pounds  of  30  per  cent  cream  from 
60°  F.  to  185°  F.  by  the  continuous  method  of  pasteurization, 


PASTEURIZATION  147 

the  condensed  steam  leaving  the  pasteurizer  at  212°  F.,  900 
B.  T.  U.  of  heat  being  obtained  for  each  pound  of  steam  used. 

2.  Determine  amount  of  steam  required  per  pound  of  butter 
fat  when  pasteurizing  same  cream  in  a  vat,  heating  it  to  145°  F., 
the  condensed  steam  leaving  at  a  temperature  of  155°  F.,  500 
pounds  of  circulating  water  being  used,  initial  temperature  of 
this  water  being  50°  F.  and  final  temperature  160°  F. 

3.  Determine  amount  of  steam  required  per  pound  of  butter 
fat  when  1,000  pounds  of  30  per  cent  cream  are  pasteurized 
under  the  same  conditions  as  specified  in  2. 

Answer: 

2000  X  0.84  X  125 

(1)  -  -  =  233.33  pounds  of  steam 

900 

-^-— =  0.389  pound  of  steam  per  pound  of  butter  fat. 

2,000  X  0.30 

,  ,  2,000X0.84X85+ 500  X  no 

(2)  -  -  =  206.69  pounds  of  steam. 

900 +  (212-155) 

=  0.344  pound  of  steam  per  pound  butter  fat. 


2,000  X  0.30 
1 ,000  > 

I 

132.08 


,  .  1,000X0.84X85+500X110  £\ 

(3)   -  -  =13 2. 08  pounds  of  steam. 

900+  (212  —  155) 


=  0.440  pound  of  steam  per  pound  of  butter  fat. 
1,000  X  0.30 

II.  Cost  of  Cooling.  —  The  cost  of  cooling  depends  primarily 
on  the  amount  of  water  required  to  remove  the  quantity  of 
heat  taken  up  by  the  milk  or  cream  during  the  process  of  pas- 
teurization. A  small  part  of  this  heat,  however,  is  removed 
by  evaporation.  This  latter  factor  is  of  greater  importance 
when  using  an  open  cooler,  such  as  a  tubular,  while  of  less  signif- 
icance when  cooling  in  a  cream  ripener. 

The  amount  of  water  required  for  doing  a  certain  amount  of 
cooling  decreases  in  proportion  to  the  number  of  heat  units 
taken  up  by  each  pound  of  water.  Therefore  the  greatest 
cooling  efficiency  is  obtained  when  the  difference  is  the  greatest 
between  the  temperature  of  the  cooling  water  as  it  enters  the 


148  MANAGEMENT   OF   DAIRY   PLANTS 

cooler  and  the  temperature  of  the  same  water  as  it  leaves  the 
cooler.  The  amount  of  water  required  for  cooling  may  differ 
greatly  in  proportion  to  the  amount  of  water  admitted  through 
the  cooler.  If  more  water  is  admitted  the  cooling  will  be  done 
more  rapidly  but  at  a  greater  expense  than  when  the  water 
flows  through  the  cooler  more  slowly.  It  is  evident  that  the 
temperature  of  the  cooling  water  greatly  influences  the  cost  as 
well  as  the  rapidity  of  cooling. 

1.  Efficiency  of  Coolers.  —  The  tubular  cooler  may  be  consid- 
ered to  be  of  high  efficiency.    The  author  found  that  the  cool- 
ing water  when  a  certain  type  of  tubular  cooler  was  used  took 
up  41.59  B.  T.  U.  of  heat  per  pound  as  against  12.58  B.  T.  U. 
when  cooling  with  the  vat,  or  it  required  3.3  times  as  much 
water  for  cooling  with  the  vat  as  with  the  tubular  cooler,  when 
cooling  with  water  of  54°  F.     It  was  also  observed  that  the 
evaporation  was  slightly  greater  when  using  the  tubular  cooler; 
however,  that  shall  be  left  out  of  consideration  in  the  follow- 
ing. 

2.  Cost  of  Cooling-Water.  —  From  experiments  referred  to, 
the  cost  of  cooling  was  figured  on  the  basis  of  the  cream  con- 
taining 30  per  cent  of  butter  fat.    About  2,000  pounds  of  cream 
were  pasteurized  at  a  time.    The  cost  of  the  water  was  figured  at 
ten  cents  per  thousand  gallons.    The  cost  per  pound  of  butter 
fat  for  cooling  when  using  a  tubular  cooler  was  found  to  be 
0.009  cent  as  against  0.021  cent  when  cooling  in  the  vat. 

3.  The  Regenerator. — The  regenerator  may  be  considered 
as  a  saving  device  for  the  pasteurizing  and  cooling  equipment. 
It  is  an  apparatus  over  which  the  cool  and  hot  milk  pass  simul- 
taneously, the  cool  milk  taking  up  heat  from  the  hot  milk,  thus 
saving  both  in  steam  and  cooling  water.    Bowen  1  reduced  the 
cost  of  coal  about  50  per  cent  and  the  cost  of  refrigeration  ap- 
proximately 60  per  cent  by  installing  a  regenerator. 

III.  Cost  of  Labor  and  Equipment.  —  The  cost  of  labor 
varies  somewhat  with  the  different  type  of  pasteurizer  employed. 
Thus  a  continuous  pasteurizer  requires  more  of  a  person's 
attention  than  is  required  when  the  cream  ripener  is  used  as  a 

i  Bui.  85,  U.  S.  Dept.  of  Agriculture,  1914. 


PASTEURIZATION  149 

pasteurizer.  Furthermore  the  former  method  involves  a  greater 
expenditure  and  therefore  more  depreciation  and  interest  on 
investment.  By  the  latter  method  practically  no  additional 
machinery  will  be  required. 

Considering  that  a  creamery  is  pasteurizing  2,000  pounds  of 
30  per  cent  cream  for  300  days  in  the  year  and  that  for  such 
work  is  used  a  continuous  pasteurizer  and  cooler  of  2,000  pounds 
per  hour  capacity  costing  $500,  the  cost  for  the  year  may  be 
summarized  as  follows: 

Labor  pasteurizing  and  cleaning,  400  hours  at  30  cents $120 

Depreciation  of  20  cents 100 

Interest  on  investment 25 

Total $245 

Cost  per  pound  of  butter  fat  = ^^ =  o.  136  cents. 

2, ooo  X. 30X300 

If  the  ripener  is  used  for  such  work  then  the  labor  represents 
about  fifteen  minutes  daily  or  a  total  of  75  hours  at  30  cents, 
or  $22.50.  Carrying  $50  annually  of  depreciation  and  interest, 
then  the  cost  per  pound  of  butter  fat  is  equal  to  0.04  cent. 

IV.  Total  Cost  of  Pasteurization.  - 

i.  Cost  of  Pasteurization  by  Continuous  Method.  —  It  was 
estimated,  page  147,  that  when  a  30  per  cent  cream  is  pasteur- 
ized by  the  continuous  method  it  will  require  0.389  pound  of 
steam  per  pound  of  butter  fat.  Figuring  that  5.5  pounds  of 
steam  are  produced  from  coal  costing  $5.50  per  ton  the  cost 
of  pasteurizing  per  pound  of  fat  is  equal  to 

0.380  X  550 

-  =  0.019  cent- 

5.5  X   2,000 

The  expenses  per  pound  of  butter  fat  when  pasteurizing  by 
the  continuous  method  may  be  summarized  as  follows: 

Cost  of  steam 0.019  cent 

Cost  of  cooling 0.009     " 

Cost  of  labor  and  equipment 0.136 

Total 0.164     " 


I5O  MANAGEMENT  OF  DAIRY  PLANTS 

2.  Cost  of  Pasteurization  by  Vat  Method.  —  Taking  for  granted 
that  the  vat  used  for  pasteurization  is  of  proper  size,  the  amount 
of  steam  required  per  pound  of  butter  fat  when  pasteurizing  a 
30  per  cent  cream  has  been  estimated  at  0.344  pound.  The 
value  of  this  being  equal  to 

0.344  X  SSo 

^-^-  =  0.017  cent. 
5.5  X  2,000 

The  total  expenses  may  be  summarized  as  follows: 

Cost  of  steam 0.017  cent 

Cost  of  cooling 0.021     " 

Cost  of  labor  and  equipment 0.040    " 


Total 0.078     " 

Bowen  1  estimates  the  cost  of  pasteurizing  one  gallon  of  milk 
at  0.313  cent  and  one  gallon  of  cream  at  0.634  cent.  The 
same  investigator  found  that  it  requires  approximately  17  per 
cent  more  heat  for  flash  pasteurization  than  for  vat  pasteuriza- 
tion. 

It  is  possible  to  reduce  the  expenses  of  pasteurization  slightly 
by  utilizing  exhaust  steam  instead  of  live  steam  as  has  been 
considered  in  the  above. 

B.  THE  ECONOMIC  EFFICIENCY  OF  PASTEURIZING 
MACHINERY 

The  economic  efficiency  of  pasteurizing  machinery  depends 
on  the  amount  of  heat  that  in  a  definite  time  will  be  transmitted 
to  milk  or  cream  in  the  heating  chamber  from  steam  or  water 
in  the  surrounding  chamber,  known  as  the  steam  chamber. 
The  amount  of  heat  thus  transmitted  depends  on:  First,  size 
of  heating  surface;  second,  thickness  of  the  heating  wall;  third, 
difference  in  temperature  on  the  two  sides  of  heating  wall,  and 
fourth,  thermal  conductivity  of  the  metal  from  which  the 
heating  wall  is  constructed. 

i  Bui.  85,  U.  S.  Dept.  of  Agriculture,  1914. 


PASTEURIZATION  151 

I.  Conductivity  of  the  Heating  Wall.  —  The  amount  of  heat 
that  in  a  given  time  will  pass  through  the  heating  wall  of  a 
pasteurizer  may  be  expressed  by  the  following  formula: 
_  KXAfa-tg) 

y=        ~~ 


Q  represents  quantity  of  heat  in  B.  T.  U.  conducted. 

K  represents  the  quantity  of  heat  in  B.  T.  U.  conducted 
through  one  square  inch  of  a  wall  one  inch  thick  per  second 
when  the  difference  in  temperature  on  the  two  sides  of  the  wall 
is  i°  F. 

A  represents  area,  in  square  inches  of  heating  surface. 

ti  represents  temperature  in  Fahrenheit  degrees  in  steam 
chamber. 

t2  represents  temperature  in  Fahrenheit  degrees  in  heating 
chamber. 

T  represents  time  in  seconds. 

d  represents  thickness  of  wall  in  inches. 

The  heating  wall  of  a  pasteurizer  should  be  constructed 
from  metal  which  is  of  high  thermal  conductivity.  Copper 
has  been  found  very  satisfactory  for  that  purpose,  its  thermal 
conductivity  being  0.72.  Only  one  metal,  silver,  is  a  better 
conductor  than  copper,  its  thermal  conductivity  being  1.096, 
but  its  use  is  prohibited  on  account  of  its  cost.  Aluminum  is 
next  to  copper  in  thermal  conductivity,  being  0.343,  while  tin  is 
only  0.152. 

Taking  for  granted  that  copper  will  be  used  for  the  construc- 
tion of  the  heating  wall  of  the  pasteurizer  we  know  that  0.72 
calorie  l  of  heat  will  be  conducted  per  second  through  one 
square  centimeter  of  a  copper  wall  one  centimeter  in  thickness 
when  the  difference  in  temperature  on  the  two  sides  of  the  wall 
is  one  degree  Centigrade. 

The  British  thermal  unit  is  a  measure  for  heat  which  is  mostly 
used  in  practical  work.  As  one  pound  is  equal  to  453.6  grams 

then  one  B.  T.  U.  is  equal  to  453.6  X  —  =  252  calories. 

1  80 

1  One  calorie  is  the  amount  of  heat  required  to  heat  one  gram  of  water  one  degree 
Centigrade  from  4°  C.  to  5°  C. 


I$2  MANAGEMENT   OF   DAIRY   PLANTS 

The  amount  of  heat  which  will  be  conducted  per  second 
through  one  square  centimeter  of  copper  one  centimeter  in 
thickness  when  the  difference  in  temperature  on  the  two  sides 
of  the  copper  wall  is  one  degree  Fahrenheit  is  equal  to 

XX     I0° 

0.72  X =  0.40  calorie. 

1 80 

The  amount  of  heat  in  B.  T.  U.  which  in  one  second  is 
conducted  through  one  square  centimeter  one  centimeter  thick 

is  equal  to  — —  B.  T.  U.  with  a  difference  in  temperature  of  one 

252 

degree  Fahrenheit. 

The  value  of  K  is  equal  to  1 

0.40       (2.54)2 

X =  0.004  *»•  *•  U. 

252         2.54 

Example: 

Determine  the  amount  of  milk  which  should  be  pasteurized 
per  hour  when  using  a  pasteurizer  of  1,400  square  inches  heat- 
ing surface;  thickness  of  copper,  0.05  inch.  The  temperature 
in  the  steam  chamber  is  212°  F.,  the  average  temperature  of 
milk  in  pasteurizer,  152°  F.  and  the  milk  is  heated  from  60°  F. 
to  180°  F. 

Answer: 

0.004  X  i,4ooX  60. 

Q  =  -  -  X  3,600  =  24,192,000  B.  T.  U. 

0.05 

Amount  of  milk  to  be  pasteurized  = 

24,IQ2,000 

=  214,468  pounds. 

120  X  .94 

II.  Factors  Reducing  the  Efficiency  of  a  Pasteurizer.  - 

From  the  above  problem  it  is  evident  that  the  theoretical 
efficiency  is  not  obtained  in  practical  work.  About  one  per 
cent  of  the  theoretical  efficiency  is  as  much  as  may  be  expected 
when  using  a  pasteurizer  of  a  continuous  type.  By  this  it  is 
not  understood  that  ninety-nine  per  cent  of  the  heat  is  lost,  for 

i  One  inch  is  figured  as  being  equal  to  2.54  c.  m. 


PASTEURIZATION  1 53 

the  loss  of  heat  is  comparatively  slight,  but  the  time  required 
for  doing  the  work  is  greatly  increased.  It  is  already  under- 
stood that  the  area  of  the  heating  surface,  the  thermal  conduc- 
tivity of  the  metal,  the  thickness  of  the  metal,  and  the  tempera- 
tures applied  are  all  factors  which  influence  the  efficiency  of  the 
pasteurizer.  Factors  greatly  affecting  the  conductivity  of  the 
pasteurizer  wall  are  the  formation  of  a  layer  of  water  on  the 
outside  of  the  heating  cylinder  and  the  burning  on  of  milk 
solids  on  the  heating  surface. 

1.  Layer  of  Water  on  Outside  of  Heating  Surface. — The 
layer  of  water  on  the  outside  of  the  heating  surface  is  formed  by 
condensation  of  steam  during  the  process  of  pasteurization.    As 
the  thermal  conductivity  of  water  is  only  .00124  the  thermal 
conductivity  of  copper  is  581  times  greater  than  that  of  water; 
it  is  therefore  economy  to  have  the  thickness  of  the  layer  of 
water  reduced  to  the  minimum. 

The  Danish  Experiment  Station  succeeded  in  increasing  the 
efficiency  of  the  continuous  pasteurizer  materially  by  soldering 
on  the  outside  of  the  heating  cylinder  a  series  of  rings  at  a 
downward  angle  of  45°.  These  rings  remove  the  water  quickly, 
the  thickness  of  the  layer  of  water  was  reduced,  and  the  eco- 
nomic efficiency  of  the  machine  increased  about  50  per  cent 
(Fig.  28.)  1 

2.  Burning  of  Milk  Solids  on  Heating  Surface.  —  Burned-on 
milk  is  extremely  poor  in  conductivity.    It  is  therefore  of  much 
importance  that  all  particles  of  burned-on  milk  are  properly 
removed  after  each  time  the  machine  has  been  used.    This  is 
done  most  readily  by  filling  the  machine  with  water  and  washing 
powder   immediately   after   pasteurization.      By   leaving   the 
dasher  revolving  from  ten  to  fifteen  minutes  it  is  quite  easy  to 
remove  with  a  brush  all  milk  particles  adhering  to  the  heating 
surface.    A  knife  or  any  kind  of  metal  should  never  be  used  for 
scraping  the  surface,  as  such  tools  will  cause  rough  places  and 
when  the  milk  strikes  such  it  will  readily  burn  on.     If  any 
amount  of  milk  has  burned  on  to  the  pasteurizer  slacked  lime 
and  sal  soda  mixed  in  equal  proportions  will  prove  of  greater 

1  Bui.  43,  Danish  Experiment  Station,  1899. 


FIG.    24.  —  Pasteurizer  with  the  Danish  Experiment  Station 
Improvements. 


PASTEURIZATION  155 

efficiency  than  washing  powder,  but  this  should  not  be  used 
unless  necessary,  as  it  has  a  dissolving  effect  on  the  tin.  The 
following  are  the  most  significant  causes  for  milk  burning  on 
to  the  heating  surface. 

A.  Too  Thin  Metal.  —  As  the  copper  wall  becomes  extremely 
thin  the  heat  is  conducted  so  readily  through  the  wall  that  the 
heating  surface  becomes  too  hot.    The  albumin  when  striking 
this  surface  is  coagulated  and  burns  on.    The  increase  in  the 
thickness  of  the  heating  wall  will  represent  a  comparatively 
slight  decrease  in  efficiency.     This  decrease,  however,  is  in- 
significant as  compared  to  that  caused  by  burned-on  milk  and 
as  copper  is  so  efficient  as  a  thermal  conductor  it  is  advisable 
to  have  a  copper  wall  of  not  less  than  one-twentieth  of  an  inch 
in  thickness.     Copper  of  such  thickness  will  not  cause  the  milk 
to  burn  on  readily  and  the  pasteurizer,  furthermore,  becomes 
of  sufficient  durability. 

B.  Too  High  Heat  in  Steam  Chamber. — The  heat  in  the 
steam  chamber  should  not  exceed  214°  F.    The  higher  the  heat 
the  greater  the  danger  of  burning  on.    The  amount  of  heat  in 
the  steam  chamber  of  pasteurizer  (Fig.  28)  is  controlled  by 
steam  trap  A.    Through  this  trap  all  water  condensed  in  the 
pasteurizer  escapes.     The  higher  this  water  column  extends 
above  the  bottom  of  the  pasteurizer  the  greater  the  steam  pres- 
sure and  temperature  in  the  steam  chamber.     Steam  should 
never  be  allowed  to  escape  through  this  trap,  as  this  will  repre- 
sent a  loss  of  heat  and  indicate  that  the  pasteurizer  is  operated 
above  its  capacity. 

C.  Too    High    Pasteurizing   Temperature.  —  It    is    natural 
that  the  heating  surface  has  to  be  kept  at  a  much  higher  degree 
of  heat  when  the  high  pasteurizing  temperatures  are  employed, 
thus  causing  more  of  the  milk  to  burn  on.    It  is  often  noticeable 
that  a  ring  of  burned-on  milk  is  formed  around  on  the  upper 
part  of  the  heating  surface  where  the  milk  has  reached  its 
highest  temperature. 

D.  Too  Hot  Steam  Coming  in  Contact  with  the  .Warm 
Milk.  —  The  steam  when  entering  the  pasteurizer,  if  of  high 
pressure,  is  considerably  above  214°  F.  and  it  is  most  important 


156  MANAGEMENT   OF   DAIRY  PLANTS 

that  such  steam  enters  the  pasteurizer  at  a  point  close  to  the 
inlet  of  the  cold  milk. 

E.  Milk  Moving  too  Slowly  Over  the  Heating  Surface.  —  If 
the  milk  is  moving  rapidly  over  the  heating  surface  there  is  no 
part  of  the  milk  solids  that  will  remain  long  enough  in  touch 
with  the  heating  surface  to  burn  on.  It  is  therefore  essential 
that  the  heating  surface  is  smooth;  rough  places  either  due 
to  imperfect  metal  or  to  burned-on  particles  retard  the  speed 
of  small  parts  of  milk  and  therefore  at  such  places  more  or 
less  burned-on  milk  solids  will  be  found.  Higher  speed  of  the 
agitator  may  prevent  the  milk  particles  from  burning  on. 

The  Danish  Experiment  Station  1  (Fig.  28)  placed  horizontal 
plates  on  the  agitator  of  a  pasteurizer  of  the  continuous  type. 
This  caused  the  milk  to  move  over  the  heating  surface  at  a 
higher  rate  of  speed  and  as  a  result  less  milk  solids  burned  on  to 
the  heating  wall.  The  horizontal  plates  on  the  dasher  further- 
more assured  uniform  heating  of  all  particles  of  milk  pasteurized 
by  preventing  milk  just  entering  the  pasteurizer  from  splashing, 
whereby  some  of  the  cold  milk  might  be  discharged  with  the 
milk  properly  pasteurized.  More  particles  of  the  milk  will 
come  in  direct  contact  with  the  heating  surface  of  the  pasteur- 
izer and  the  economic  efficiency  of  the  machine  is  thereby  in- 
creased. 

III.  Purchasing  Equipment  for  Pasteurization. 

1.  Pasteurizer.  —  When  purchasing  a  pasteurizer  the  buyer 
should  request  that  the  manufacturer  furnish  a  guaranty  as  to 
its  economic  efficiency.    If  a  machine  is  represented  to  be  of 
1,000  pounds  capacity  per  hour  the  temperature  of  pasteuriza- 
tion should  be  considered,  as  it  takes  about  twice  as  long  to 
pasteurize  a  given  amount  from  60°  F.  to  185°  F.  as  is  required 
to  pasteurize  the  same  amount  from  60°  F.  to  145°  F.    The 
pasteurizer  should  be  constructed  from  material  of  sufficient 
strength  and  the  heating  surface  should  be  smooth. 

2.  Cooler.  —  The  cooler  should  be  of  a  size  sufficient  for  cool- 
ing the  milk  or  cream  to  within  2°  to  4°  F.  of  the  temperature  of 
the  water.    If  a  tubular  cooler  is  used  the  tubes  should  be  con- 

1  Bulletin  43,  Danish  Experiment  Station,  1899. 


PASTEURIZATION  157 

nected  with  metal  strips  which  insures  a  more  complete  spread- 
ing of  the  milk  or  cream. 

3.  Steam  Boiler.  —  It  is  important  that  the  boiler  is  of  suffi- 
cient size.  The  capacity  of  a  boiler  is  rated  by  the  amount  of 
water  it  is  able  to  evaporate.  A  horse  power  is  equivalent  to  the 
evaporation  of  34  1/2  pounds  of  water  per  hour  at  212°  F.  If 
milk  is  pasteurized  to  a  temperature  of  145°  F.  from  initial 
temperature  of  60°  F.  then  it  will  require  approximately  one 
horse  power  for  every  400  pounds  of  milk  pasteurized  per  hour 
or  it  will  require  approximately  one  horse  power  for  300  pounds 
of  milk  per  hour  if  it  is  heated  to  180°  ori85°F.  It  is  advisable 
to  provide  for  surplus  boiler  capacity,  as  forcing  the  boiler 
results  in  excessive  fuel  requirements. 


CHAPTER  XII 
COST  OF  WATER 

WHERE  the  water  is  pumped  in  the  creamery  it  is  scarcely 
realized  that  water  costs  money.  In  that  instance  it  will  also  be 
unnecessary  from  the  stand  point  of  profit  and  loss  to  deter- 
mine the  cost  of  the  water  for  a  small  plant,  as  that  will  be  in- 
cluded under  the  total  cost  of  fuel,  labor,  supplies,  depreciation, 
etc.  If  the  water  is  purchased  from  the  city  the  item  of  expense 
is  apparent,  and  first,  then,  the  creamery  manager  begins  to 
make  an  effort  to  reduce  the  cost  thereof  and  in  doing  so  it  is 
essential  to  know  what  the  water  is  used  for.  This  is  most 
readily  determined  by  having  separate  meters  on  the  water 
pipes  leading  to  the  different  departments.  Water  may  be  used 
to  advantage  in  great  quantities  in  the  creamery,  but  it  should 
not  be  wasted. 

A.  POWER  REQUIRED  FOR  PUMPING  WATER 

The  amount  of  power  required  to  elevate  water  varies  directly 
with  the  quantity  and  with  the  height  to  which  it  is  to  be  ele- 
vated. Therefore  it  requires  twice  as  much  power  to  elevate 
100  pounds  20  feet  per  minute  as  is  required  to  elevate  50  pounds 
20  feet  per  minute,  and  it  requires  twice  as  much  power  to 
elevate  100  pounds  of  water  40  feet  as  is  required  to  elevate  the 
same  amount  of  water  20  feet. 

The  theoretical  power  required  for  pumping  water  is  calcu- 
lated in  terms  of  horse  power  from  the  following  formula: 

Y  =  gX8.3.sX  (h+f) 

33,000  i 

1  One  horse  power  is  33,000  foot  pounds  per  minute. 
158 


COST   OF   WATER 


IS9 


When  Y  represents  horse  power  required 

g  represents  gallons  of  water  per  minute 
h  represents  height  of  elevation,  measured  from  the 
surface  of  water  in  well  to  the  highest  point  to  which  the  water 
is  raised. 

f  represents  the  friction  head  in  the  water  pipes. 
Example : 

Determine  the  theoretical  horse  power  required  to  pump 
12,000  gallons  of  water  per  hour  through  a  4-inch  pipe  200  feet 
long,  the  water  being  raised  100  feet. 
Answer: 

The  friction  head  1  is  1.22  X  2.3  =  2.8  for  a  pipe  100  feet  long. 
For  a  pipe  200  feet  long  f=  2.8X  2  =  5.6 

IS*™.  X  8.35  X  (IOQ+  5-6) 

Y  = ~  —  5-34  **•  *• 

33,000 

As  the  efficiency  of  small  pumps  usually  ranges  from  60  to  45 
the  theoretical  horse  power  should  be  doubled  when  applying 
it  to  practical  work.  For  large  pumps  a  higher  efficiency  is 
obtained. 

The  following  table  gives  the  friction  loss  in  pounds  pressure 
per  square  inch  for  each  100  feet  of  length  in  different  size  clean 
iron  pipes  discharging  given  quantities  of  water  per  minute. 
This  friction  loss  is  greatly  increased  by  bends  or  irregularities 
in  the  pipe. 

To  find  " friction  head"  in  feet  multiply  figures  by  2.3 

i  Table  VII. 


i6o 


MANAGEMENT  OF  DAIRY  PLANTS 
TABLE  VII ' 


Gal.  per 
minute 

Size  of  pipes,  inside  diameter 

H 

inch 

i  inch 

iX 

inch 

i)4 

inch 

2  inch 

2*/2 

inch 

3  inch 

4  inch 

e    . 

3-3 
13.0 

28.7 
50-4 
78.8 

0.84 
3-i6 
6.98 
12.30 
19.00 
27.50 
37.00 
48.00 

0.31 
1-05 
2.38 
4.07 
6.40 

9-15 
12.40 
16.  10 

20.20 
24.90 
56.10 

0.  12 

0.47 
0.97 
1.66 
2.62 
3-75 
5-05 
6.52 
8.15 

IO.OO 

22.40 
39-oo 

10 

0.  12 

o.  26 
0.42 
0.64 
0.91 

I.  22 

1.  60 

2.  O2 
2.44 
5-32 
9.46 
14.90 
21.  20 
28.10 
37-50 

15  
20.  .. 

2C 

0.  21 

o.  10 

0.27 

3O 

se 

40  
A< 

o.  20 

50  
7t  .  . 

0.81 
i.  80 
3-20 
4.89 
7.00 
9.46 
12.47 
19.56 
28.06 

0-35 
0.74 

i-3i 
1.99 
2.85 
3-85 
5-02 

7.76 

II.  20 
15.20 
19.50 
25.00 
30.80 

0.09 
0.23 

o-33 
0.49 
0.69 
0.94 

1.22 
1.89 

2.66 
3-65 
4-73 
6.01 

7-43 
9-54 
14.32 

IOO.  .  .  . 

I2<N 

ICO.  . 

17? 

2OO.  .  . 

250  

3OO     . 

3<;o.  . 

A.OO 

A  CO 

C.QO 

600.  .  . 

7OO 

B.  WATER  PUMPS 

The  most  important  pumps  to  be  considered  by  the  creamery 
manager  are  the  piston  or  plunger  pump,  the  rotary  and  the 
centrifugal  pump.  The  air  lift  may  also  be  considered  in  this 
connection. 


1  Kidder,  Architects'  and  Builders'  Pocketbook,  1912. 


COST   OF   WATER  l6l 

I.  The  Piston  or  Plunger  Pump.  —  The  piston  or  plunger 
pump  is  most  commonly  used  in  the  creamery.    This  may  be 
belt  driven  or  it  may  be  operated  with  steam  direct.    The  for- 
mer method  is  the  most  economical  providing  the  pump  is  large 
enough,  and  that  a  supply  tank  of  sufficient  size  is  provided  so 
that  all  the  pumping  is  done  while  the  engine  is  being  operated 
for  other  purposes.     It  would  not  be  profitable  to  operate  a 
large  engine  merely  for  the  purpose  of  pumping  water.    Then 
it  would  be  more  advisable  to  install  a  pump  driven  by  steam 
direct. 

II.  The  Rotary  Pump.  —  The  rotary  and  the  centrifugal 
pumps  may  be  used  for  shallow  wells.    For  small  lifts  of  4  to 
5  feet  they  are  considered  to  have  a  higher  efficiency  than  the 
piston  pumps,  but  for  higher  lifts  their  efficiency  is  less  and  they 
will  not  be   practical   for  lifting  water   to  exceed   15   to  20 
feet. 

HI.  The  Air  Lift.  —  The  air  lift  consists  of  a  well  tubing, 
inside  of  it  is  a  small  pipe  through  which  compressed  air  is 
blown.  The  compressed  air  lifts  the  column  of  water.  By  this 
system  water  may  be  lifted  130  feet  above  its  lower  level.  It  is 
said  to  be  of  greatest  efficiency  when  the  depth  at  which  the 
discharge  tube  stands  under  water  in  the  well  is  one  and  a  half 
times  the  height  of  the  discharge  pipe  above  the  water.  By  re- 
ducing the  proportion  of  the  pipe  below  the  water  surface  the 
efficiency  is  gradually  decreased  and  the  system  cannot  be 
operated  if  the  portion  above  the  water  is  increased  to  one  and  a 
half  times  the  size  of  the  pipe  below  the  water  surface.1  It 
is  claimed  2  that  the  cost  of  raising  1,000  gallons  of  water  by  the 
air  lift,  including  fuel,  labor,  oil,  interest  on  cost  of  well,  boiler, 
compressor,  foundations,  pipes,  real  estate,  erection,  taxes,  and 
15  per  cent  for  depreciation  runs  from  one-fifth  to  two  and  one- 
half  cents  according  to  size  of  plant,  height  of  lift,  and  other 
local  conditions. 

1  Siebel's  Compend.  of  Mechanical  Refrigeration  and  Engineering,  1911. 

2  Reported  by  Kidder  in  Architects'  and  Builders'  Pocketbook,  1912. 


l62  MANAGEMENT   OF   DAIRY   PLANTS 

C.  ECONOMY  IN  PUMPING  WATER  AT  THE 
CREAMERY 

It  is  not  considered  advisable  for  a  creamery  to  buy  water 
from  the  city  if  permanently  located,  as  the  city  water  is  usually 
warmer  than  water  drawn  directly  from  a  well.  It  will  also  be 
more  expensive.  The  lowest  rate  for  water  used  for  creamery 
purposes  that  has  come  to  the  observation  of  the  author  is 
5  cents  per  i  ,000  gallons.  Most  cities  will  charge  10  cents  or  even 
more.  Some  of  the  smaller  towns  that  have  comparatively 
expensive  waterworks  and  labor  are  not  able  to  pump  water  as 
economically  as  the  creamery. 


CHAPTER  XIII 

RENT,  DEPRECIATION,  INTEREST,  AND 
INSURANCE 

A.  RENT 

WHERE  the  creamery  building  is  owned  by  the  creamery 
company  it  is  often  customery  not  to  charge  rent  but  to  charge 
interest  on  the  investment,  and  insurance  and  depreciation 
on  the  building.  There  is  a  good  reason,  however,  for  charging 
rent,  as  the  investment  of  money  in  real  estate  should  be  con- 
sidered as  a  separate  investment  and  a  detailed  record  should 
be  kept  thereof  the  same  as  of  money  invested  in  the  busi- 
ness. Therefore  a  special  ledger  account  should  be  kept  of 
the  building.  The  rent  is  entered  monthly  to  the  credit  of 
this  account,  and  insurance,  depreciation,  and  the  current  rate 
of  interest  on  the  investment  are  entered  on  the  debit  side  of 
the  ledger.  The  current  rate  of  rent  should  be  charged  for 
the  property.  From  this  record  it  will  be  evident  whether  or 
not  the  investment  in  real  estate  is  profitable.  Perhaps  it 
might  pay  to  sell  the  property  and  then  lease  it  from  the  pur- 
chaser or  possibly  other  property  might  be  rented  and  be  even 
more  suitable  for  the  business.  Such  factors  are  determined 
by  studying  local  conditions. 

If  more  than  one  department  is  operated  in  the  same  building 
the  rent  should  be  divided  among  the  departments  in  propor- 
tion to  the  amount  of  space  and  the  value  of  the  space  occupied 
by  each.  The  value  of  the  space  should  be  determined  on  the 
basis  of  what  the  income  from  it  would  be  if  it  were  leased  to 
others.  If  the  building  were  located  in  the  retail  district  of  a 
city  it  would  soon  be  discovered  that  the  front  part,  or  perhaps 
the  entire  first  floor,  would  net  more  money  if  leased  for  retail 

163 


1 64  MANAGEMENT  OF  DAIRY  PLANTS 

purposes  and  not  used  for  manufacturing.  Often  the  office  is 
located  in  the  most  desirable  part  of  the  building.  If  the  proper 
rent  were  charged  for  the  office  room  it  might  impress  the 
creamery  owner  that  the  office  would  be  of  just  as  much  service 
to  the  company  if  located  in  a  part  of  the  building  less  service- 
able for  factory  purposes. 

B.  DEPRECIATION 

The  depreciation  deducted  for  wear  and  tear  of  machinery, 
equipment  and  building  should  be  great  enough  to  cover  the 
natural  decrease  in  value  of  the  property.  The  average  life 
of  the  various  kinds  of  machinery  and  equipment  should  be 
determined  and  the  rate  of  depreciation  estimated  in  propor- 
tion thereto.  The  amount  depreciated  should  always  be  such 
that  the  book  value  of  the  property  is  equivalent  to  the  real 
value  thereof. 

The  life  of  a  creamery  boiler  and  engine  is  about  fifteen  years. 
Suppose  the  original  cost  of  the  boiler  and  engine  were  $500, 
then  the  monthly  depreciation  of  the  boiler  and  engine  would  be 

-£?-  =  $2.78 
15X12 

A  churn  if  properly  cared  for  should  last  for  five  years.  In 
some  of  the  larger  plants  it  may  not  last  for  more  than  three 
years.  The  life  of  a  milk  can,  including  both  wear  and  loss,  is 
about  three  years,  and  of  ice-cream  containers  and  tubs  from 
three  to  four  years. 

The  building,  if  built  from  hard-burned  brick,  cement  blocks, 
or  similar  material,  should  last  for  forty  years  or  more,  if  a 
frame  structure,  twenty  years  will  be  the  life  thereof.  If  the 
location  is  favorable  it  is  often  possible  that  the  value  of  the 
ground  on  which  the  building  stands  will  increase  in  proportion 
to  the  depreciation  in  the  value  of  the  building.  It  is  safe,  how- 
ever, to  be  conservative  and  not  place  fictitious  values  on  any 
of  the  property.  Such  items  as  good  will,  advertising,  etc.,  if 
considered  as  a  financial  asset  of  the  company  should  be  liberally 
depreciated,  as  such  assets  are  not  always  marketable. 


RENT,   DEPRECIATION,   INTEREST,   AND  INSURANCE          165 

Repairs  may  or  may  not  be  charged  against  permanent 
improvements  and  then  depreciated.  Smaller  repairs  may 
conveniently  be  considered  under  the  head  of  current  expenses 
and  charged  against  the  expenses  for  the  month  or  year  when  the 
repairs  were  made.  Other  repairs  are  of  such  a  nature  that 
they  would  naturally  be  added  to  the  value  of  the  permanent 
property  and  in  the  future  stand  for  their  share  of  depreciation. 

The  manager  who  usually  buys  the  supplies  for  the  creamery 
is  seldom  authorized  to  purchase  machinery  or  permanent 
equipment  except  by  the  approval  of  the  board  of  directors; 
thus  the  company  guards  against  any  unnecessary  increase  of 
its  investment. 

C.  INTEREST 

The  cooperative  creamery  association  when  organizing  often 
borrows  the  money  required  for  building,  equipment,  and  operat- 
ing expenses.  The  interest  and  part  of  the  principal  is  paid 
annually  and  is  charged  directly  against  the  general  expenses 
of  the  creamery.  After  several  years,  when  the  entire  principal 
has  been  paid,  the  creamery  is  owned  by  the  organization  and 
the  paying  of  interest  ceases.  No  more  loans  should  be  made, 
as  the  amount  accumulated  to  cover  depreciation  of  the  prop- 
erty or  what  is  often  known  as  sinking  fund  should  remain  in 
the  treasury  and  should  be  sufficient  for  replacing  worn-out 
machinery  with  new. 

The  joint-stock  company  will  continue  to  pay  interest  on 
stock  held  by  its  stockholders.  Such  interest,  as  well  as  interest 
on  money  borrowed,  is  charged  directly  against  the  general 
expenses.  The  current  interest  on  money  invested  in  any 
proprietary  creamery  should  be  considered  as  a  general  expense 
and  the  manufacturing  department  will  pay  its  share  thereof. 

D.  INSURANCE 

Insurance  as  denned  by  Webster  is  a  contract  whereby,  for 
a  stipulated  consideration  called  a  premium,  one  party  under- 
takes to  indemnify  the  other  against  loss  by  certain  risks.  The 
party  agreeing  to  make  the  compensation  is  called  the  insurer 


1 66  MANAGEMENT   OF   DAIRY   PLANTS 

or  the  underwriter,  the  other  party  to  the  contract  is  called  the 
insured,  the  written  contract  is  called  the  policy,  and  the  event 
insured  against,  the  risk. 

I.  Fire  Insurance.  —  Fire  insurance  is  a  contract  whereby 
the  insurer  indemnifies  the  insured  against  fire  risk.    This  form 
of  insurance  should  be  carried  at  all  times  and  in  such  amounts 
that  not  merely  the  building,  machinery,  and  equipment  are 
insured  to  their  full  value,  but  the  stock  of  merchandise  on 
hand  should  also  be  fully  covered.    If  the  business  transacted 
is  of  such  a  nature  that  the  stock  of  merchandise  carried  on 
hand  is  of  much  higher  value  at  one  season  than  at  another, 
then  it  is  usually  advisable  to  add  additional  insurance  to  apply 
only  for  the  season  while  the  stock  is  of  greatest  value. 

It  is  the  duty  of  the  insured  to  give  immediate  notice  in 
writing  of  fire  loss  to  the  insurance  company  and  within  60  days 
after  date  of  fire  render  an  itemized  statement  of  losses  sus- 
tained to  the  insurance  company,  this  statement  to  be  signed 
and  sworn  to  by  the  insured. 

II.  Employer's  Liability  Insurance.  —  Employer's  liability 
insurance  is  a  contract  whereby  the  insurer  indemnifies  the 
insured  against  liability  for  accidents  to  employees.     While 
such  accidents  are  seldom  heard  of  in  the  smaller  plants  they 
are  rather  frequent  in  larger  manufacturing  establishments. 

III.  Fidelity  Insurance.  —  Fidelity  insurance  is  a  contract 
which  protects  the  employer  against  loss  by  the  fraud  or  dis- 
honesty of  his  employees.    This  contract  is  usually  known  as  a 
bond.    It  is  to  be  recommended  that  any  employee  handling 
any  of  the  company's  money  furnish  a  bond  issued  by  some 
reliable  fidelity  insurance  company.    The  company  for  which 
the  employee  works  should  pay  the  premiums  on  such  bonds. 

In  addition  to  the  above  forms  of  insurance  there  are  many 
others  such  as  steam-boiler  insurance,  plate-glass  insurance, 
credit  insurance,  etc. 

IV.  Insurance  Records.  —  The  manager  should  have  some 
convenient  method  by  which  to  know  the  amount  of  insurance 
carried  on  the  different  lines  of  property,  and  the  date  when  the 
contracts  expire.    Form  XV  may  answer  for  that  purpose. 


RENT,   DEPRECIATION,   INTEREST,   AND   INSURANCE 

FORM  XV 

INSURANCE  RECORD 


i67 


Agent 

Property  Insured 

Expiration 

Building 

Machinery 

Fixtures 

Stock 

Date 

Year 

C.  Smith  

5,000 

2,000 

Jan.  25 

IQI5 

C.Jones  

3,000 

Feb.  28 

1917 

Total 

All  of  the  above-mentioned  expenses  enter  into  the  cost 
of  manufacturing  of  products.  In  addition  to  these  there  are 
other  miscellaneous  items  not  mentioned  in  the  foregoing. 


CHAPTER  XIV 

THE  BUTTER  OVERRUN  AND  THE  RELATION  BE- 
TWEEN CHEMICAL  COMPOSITION  OF  BUTTER 
AND  OVERRUN 

THE  BUTTER  OVERRUN 

The  Actual  Butter  Overrun.  —  By  this  is  understood  the 
difference  between  amount  of  butter  obtained  and  the  amount 
of  fat  contained  in  the  milk  or  cream  used  for  the  manufacture 
thereof.  This  definition  is  the  most  practical  and  fair  to  all 
concerned;  it  is  with  this  meaning  that  the  term  overrun  is  used 
in  this  book. 

The  Final  Butter  Overrun.  —  By  this  is  understood  the  dif- 
ference between  amount  of  butter  sold  and  amount  of  fat  pur- 
chased for  the  manufacture  thereof.  This  butter  fat  may  be 
purchased  locally  or  through  receiving  stations. 

This  definition  for  overrun  may  be  quite  practical  to  the 
creamery  manager,  but  unfair  to  the  butter  maker  unless  the 
latter  is  in  full  charge  of  cream  purchasing,  butter  making  and 
selling,  as  the  loss  of  fat  in  any  department  where  the  cream  is 
being  handled  from  the  time  it  is  purchased  until  it  is  manu- 
factured into  butter  reduces  the  overrun.  The  advantage  to 
the  manager  of  determining  the  overrun  in  accordance  with 
this  definition  is  primarily  that  the  overrun  suggests  to  him  a 
profit  or  loss;  he  is  usually  clear  as  to  the  amount  of  overrun  he 
should  obtain  for  making  a  profit. 

The  Chemical  Butter  Overrun.  —  This  is  the  difference 
between  the  amount  of  butter  obtained  and  the  amount  of 
butter  fat  contained  in  the  butter.  In  accordance  with  this 
definition  the  overrun  is  equal  to  ingredients  other  than  the 
butter  fat  of  which  the  butter  is  composed,  and  the  overrun 
might  thus  be  determined  from  chemical  analysis  of  the  butter. 

1 68 


THE   BUTTER   OVERRUN  169 

Per  Cent  Butter  Overrun.  —  By  per  cent  butter  overrun 
is  understood  the  amount  of  butter  made  in  excess  of  each 
hundred  pounds  of  butter  fat  used  therefor.  If  120  pounds  of 
butter  are  produced  from  100  pounds  of  butter  fat,  the  overrun  is 
20  per  cent.  Therefore  if  y  stands  for  per  cent  overrun,  b  for 
pounds  of  butter  obtained  from  f  pounds  of  butter  fat  then 


100 

Example:  1,800  pounds  of  cream  containing  30  per  cent  of 
butter  fat  produce  630  pounds  of  butter.  Determine  per  cent 
of  butter  overrun. 

Answer: 


630  -1,  800  Xy3^  =  i 

i,8ooXV& 

The  above  formula  may  also  be  written  as  follows: 

y  =  100    --  i 


Thus  the  per  cent  of  overrun  from  the  foregoing  example  is  de- 
termined as  follows: 


The  Financial  Value  of  the  Overrun.  —  The  manufacturers 
of  butter  consider  that  the  overrun  or  even  a  part  thereof  is 
sufficient  to  pay  for  manufacturing  expenses  and  dividends  on 
the  investment.  It  is  therefore  evident  that  the  matter  of 
overrun  is  of  vital  importance  to  the  creamery  manager.  He 
knows  the  manufacturing  cost  per  pound  of  butter,  and  if  he 
also  knows  the  value  of  the  overrun  based  on  each  pound  of 
butter  manufactured,  or  on  each  pound  of  butter  fat  used  in 
manufacturing,  then  he  will  be  fairly  well  informed  as  to  the 
extent  of  his  profit  or  loss.  The  exact  value  of  the  overrun 
per  pound  of  butter  or  of  butter  fat,  when  the  overrun  and 
the  selling  price  of  butter  are  known,  is  determined  as  follows: 

If  y  represents  the  value  of  overrun  per  pound  of  butter, 
z  the  value  of  overrun  per  pound  of  butter  fat,  d  the  market 


I7O  MANAGEMENT   OF   DAIRY  PLANTS 

value  of  the  butter,  and  g  the  per  cent  of  overrun  obtained, 
then 


100 


IOO 

Example:  The  overrun  is  20  per  cent  on  butter  sold  for  30 
cents  per  pound;  determine  the  value  of  the  overrun  per  pound 
of  butter  and  per  pound  of  butter  fat. 

y  =  30  X  20/120  =  5  cents. 
z  =  30  X  20/100  =  6  cents. 

Tables  Nos.  VIII  and  IX  illustrate  the  effect  which  the  in- 
crease or  decrease  of  per  cent  of  overrun  and  the  market  value 
of  the  butter  have  on  the  value  of  the  overrun  per  pound  of 
butter  and  per  pound  of  butter  fat. 

RELATION  BETWEEN  CHEMICAL  COMPOSITION 
OF  BUTTER  AND  OVERRUN 

Composition  of  Butter.  —  The  composition  of  normal  Ameri- 
can butter  in  accordance  with  the  analysis  made  by  the  De- 
partment of  Agriculture,1  Washington,  D.  C.,  of  695  samples 
is  as  follows: 

Percent 
Fat  .................   82.41         £0  -  V  '.? 

Moisture  ............    13  .90          '£"•   '      t 

Salt  ................     2.51  *•  *  V 

Curd..  1.18  I*   0  > 


Total loo .  oo 

Butter  Fat  Content  of  Butter. —  The  butter  fat  is  the 
principal  ingredient  both  in  regard  to  amount  and  to  its  com- 
mercial value.  An  increase  in  fat  content  of  butter  means  a 
corresponding  decrease  in  butter  overrun  and  vice  versa.  An 
increase  in  fat  content  of  the  butter  increases  the  cost  of  the 
butter  to  the  manufacturer. 

i  Bui.  149,  B.  A.  I. 


THE   BUTTER   OVERRUN 


171 


Moisture  Content  of  Butter.  —  The  moisture  is  second 
in  importance  because  it  is  present  in  comparatively  large 
amounts  and  the  per  cent  thereof  is  readily  increased  or  re- 
duced, and  the  overrun  thereby  correspondingly  increased 
or  reduced.  Moisture  is  an  essential  ingredient,  inasmuch  as  it 
adds  pliability  to  the  butter.  However,  the  body  of  the  butter 
becomes  short  and  injured  if  the  moisture  content  is  increased 
to  above  the  amount  which  is  normally  held  in  the  butter. 
Normal  butter,  in  accordance  with  the  Federal  standards, 
should  contain  less  than  16  per  cent  of  moisture. 

The  average  moisture  content  of  the  butter  cannot  be  con- 
sidered uniform  through  the  year,  even  if  the  butter  is  manu- 
factured under  uniform  conditions,  because  the  chemical  com- 
position of  the  butter  fat  is  influenced  by  various  factors. 
Butter  containing  a  high  per  cent  of  softer  fats  will  contain 
more  moisture  than  butter  containing  less  of  such  fats.  This 
explains  the  tendency  of  the  butter  to  take  up  more  moisture 
during  the  spring  of  the  year  than  during  the  winter  season. 

TABLE  VIII 

TABLE  GIVING  VALUE  OF  OVERRUN  PER  POUND  OF  BUTTER  AND  PER  POUND 
OF  BUTTER  FAT  WHEN  MARKET  VALUE  OF  BUTTER  is  30  CENTS  PER 
POUND 


Per  cent 
overrun 

Market  value 
of  butter 

Value  of  overrun 
per  pound  butter 

Value  of  overrun 
per  pound  butter  fat 

Cents 

Cents 

Cents 

15 

30 

3.913 

4-5 

16 

30 

4.138 

4.8 

17 

30 

4-359 

5-i 

18 

30 

4.576 

5-4 

iQ 

30 

4.790 

5-7 

20 

30 

5.000 

6.0 

21 

30 

5.207 

6-3 

22 

30 

5.410 

6.6 

23 

30 

5.610 

6.9 

24 

30 

5-807 

7.2 

25 

30 

6.000 

7-5 

172 


MANAGEMENT   OF   DAIRY  PLANTS 


TABLE  IX 

TABLE  GIVING  VALUE  OF  OVERRUN  PER  POUND  OF  BUTTER  AND  PER  POUND 
OF  BUTTER  FAT  WHEN  A  20  PER  CENT  OVERRUN  is  OBTAINED 


Per  cent 
overrun 

Market  value 
of  butter 

Value  of  overrun 
per  pound  butter 

Value  of  overrun 
per  pound  butter  fat 

Cents 

Cents 

Cents 

20 

25 

4.167 

5-o 

20 

26 

4-333 

5-2 

20 

27 

4.500 

5-4 

20 

28 

4.667 

5-6 

20 

29 

4-833 

5-8 

20 

30 

5  .  ooo 

6.0 

20 

3i 

5-i67 

6.2 

20 

32 

5-333 

6.4 

20 

33 

5-5oo 

6.6 

20 

34 

5.667 

6.8 

20 

35 

5.833 

7-o 

2O 

36 

6.  ooo 

7-2 

2O 

37 

6.167 

7-4 

20 

38 

6-333 

7-6 

2O 

39 

6.500 

7-8 

20 

40 

6.667 

8.0 

20 

4i 

6.833 

8.2 

20 

42 

7.000 

8-4 

2O 

43 

7.167 

8.6 

20 

44 

7-333 

8.8 

20 

45 

7.500 

9.0 

2O 

46 

7.666 

9-2 

2O 

47 

7-833 

9-4 

20 

48 

8.000 

9.6 

2O 

49 

8.167 

9.8 

20 

50 

8-333 

10.  0 

20 

52 

8.667 

10.4 

2O 

54 

9.000 

10.8 

20 

56 

9-333 

II.  2 

2O 

58 

9.666 

ii.  6 

2O 

60 

IO.OOO 

12.  O 

2O 

62 

10-333 

12.4 

THE   BUTTER   OVERRUN 


173 


TABLE  IX— Continued 


Per  cent 
overrun 

Market  value 
of  butter 

Value  of  overrun 
per  pound  butter 

Value  of  overrun 
per  pound  butter  fat 

Cents 

Cents 

Cents 

20 

64 

10.666 

12.8 

20 

66 

ii  .000 

13-2 

20 

68 

n-333 

13-6 

20 

70 

11.666 

14.0 

20 

72 

I2.OOO 

14.4 

20 

74 

12-333 

14.8 

20 

76 

12.666 

15.2 

20 

78 

13.000 

15-6 

2O 

80 

13-333 

16.0 

i.  Moisture  Control.  —  It  is  possible  for  the  butter  maker, 
by  careful  study  of  conditions,  to  regulate  the  moisture  content 
so  it  may  remain  nearly  constant  regardless  of  the  composition 
of  the  butter  fat.  The  principal  factors  to  be  considered  in 
this  connection  and  factors  which  are  under  control  of  the 
butter  maker  are  presented  in  bulletin  No  76,  Iowa  Experiment 
Station,  as  follows: 

"  Churning  in  a  warm  room  and  raising  the  temperature 
of  the  cream  and  wash  water  cause  the  butter  to  become  softer 
and  unite  into  lumps,  in  which  condition  it  holds  and  retains 
moisture  to  a  greater  extent  than  when  butter  is  firmer. 

"An  increase  in  the  size  of  granules  due  to  over-churning 
increases  the  moisture  content  gradually  and  only  to  a  small 
extent.  By  churning  into  lumps,  the  moisture  content  of  butter 
is  increased  greatly. 

"The  moisture  content  of  butter  can  be  regulated  by  con- 
trolling the  temperatures,  the  amount  of  wash  water,  and 
degree  of  churning  in  the  wash  water. 

"The  richer  the  cream  is  at  the  time  of  churning,  the  more 
moisture  the  butter  obtained  will  contain,  providing  all  other 
conditions  are  alike. 


174  MANAGEMENT   OF   DAIRY   PLANTS 

"The  degree  of  ripeness  has  very  little  if  any  influence  upon 
the  moisture  content  of  butter. 

"When  all  other  conditions  are  the  same,  butter  from  pas- 
teurized cream  contains  about  11/2  per  cent  less  moisture  than 
that  made  from  raw  cream. 

"If  it  were  possible  to  keep  all  conditions  alike  the  fullness 
of  churn  will  have  no  influence  on  the  moisture  content  of 
butter." 

In  accordance  with  results  obtained  by  the  Indiana  Experi- 
ment Station  l  the  acidity  of  cream,  method  of  salting,  and 
amount  of  salt  used  do  not  materially  influence  the  moisture 
content  of  the  finished  butter,  but  large  churnings  yield  butter 
with  a  higher  per  cent  moisture  than  small  churnings,  and 
working  butter  in  water  regardless  of  temperature  increases  the 
moisture  content  of  butter. 

Moisture  tests  should  be  made  from  each  churning  so  that 
the  butter  maker  may  learn  to  control  the  moisture  content  of 
his  butter.  Such  tests  are  also  of  importance  so  that  he  may 
know  whether  or  not  he  is  making  a  legal  butter.  It  will  be 
taken  for  granted  that  butter  makers  and  creamery  managers 
are  fully  familiar  with  the  use  of  the  moisture  test. 

Salt  Content  of  Butter.  —  The  salt  content  of  butter  may 
vary  from  i  to  5  per  cent.  Thus  it  becomes  evident  that  the 
salt  content  influences  the  overrun  materially.  Salt  is  added  to 
butter  primarily  because  the  consumers  demand  it.  The  salt 
content  should  be  uniform:  First,  because  it  influences  the 
uniformity  of  the  flavor,  and  second,  the  profit  obtained 
by  the  manufacturer  from  added  salt  should  remain  con- 
stant. 

The  markets  influence  the  amount  of  salt  that  may  be  added 
to  the  butter.  Enough  salt  should  be  added  to  satisfy  the 
consumers  and  no  more.  The  European  markets  demand  a 
lower  salt  content  than  the  markets  in  the  United  States. 
The  Eastern  markets  in  the  United  States  demand  from  i  1/2  to 
21/2  per  cent  salt  and  would  not  be  satisfied  with  butter  con- 

i  Bulletin  160,  1912,  by  Hunziker,  Mills,  and  Spitzer. 


THE   BUTTER   OVERRUN  175 

taining  from  3  to  5  per  cent  salt,  which  is  often  preferred  in  the 
Western  markets. 

1.  Amount  of  Salt  that  May  be  Dissolved  in  Butter.  —  The 
amount  of  salt  that  may  be  dissolved  in  butter  depends  upon 
the  moisture  content  of  the  butter,  as  the  fat  has  no  power  as  a 
salt  solvent.    Well-worked  butter  will  contain  brine  of  as  much 
as  16.78  per  cent  sodium  chloride.1    Suppose  the  butter  con- 
tains 15.5  per  cent  of  moisture,  then  the  amount  of  salt  con- 
tained in  the  solution  in  such  butter  is  2.6  per  cent.     Any 
amount  contained  in  excess  of  that  will  be  left  in  the  butter  as 
undissolved  salt.    If  the  proportion  of  undissolved  salt  becomes 
too  high,  the  butter  appears  gritty.    It  is  possible  that  butter 
containing  only  2.5  per  cent  of  salt  may  appear  gritty.    This 
may  be  due  either  to  a  low  water  content  of  the  butter  or  to 
insufficient  working. 

2.  Unsalted  Butter.  —  Unsalted  butter  is  manufactured  from 
ripened  cream,  no  salt  being  added  to  the  butter.     This  is 
often  incorrectly  called  sweet  butter,  which  term  rightfully 
belongs  only  to  such  butter  as  is  made  from  unripened  cream 
and  without  the  addition  of  salt.     The  moisture  and  casein 
content  of  unsalted  butter  is  practically  the  same  as  that  of 
salted  butter  while  fresh,  but  as  the  butter  becomes  older  the 
salted  butter  has  a  tendency  to  lose  more  in  moisture  content 
than  the  corresponding  unsalted  butter.    The  greater  difference 
between  the  composition  of  the  two  kinds  of  butter,  however, 
is  the  lack  of  salt  in  one  and  a  corresponding  increase  in  fat 
which  brings  about  a  corresponding  decrease  in  the  overrun. 
Unsalted  butter  is  therefore  of  greater  value  per  pound  to  the 
manufacturer  than  salted  butter.    The  corresponding  value  of 
unsalted  butter  may  be  determined  as  follows: 

Let  s  represent  per  cent  of  salt  contained  in  salted  butter, 
p,  price  per  pound  of  salted  butter,  and  y,  price  per  pound  of 
unsalted  butter. 

Then 

TOO 

y  =  p- 

100  —  S 
1  Bulletin  80,  by  McKay  and  Larsen,  Iowa  Experiment  Station,  1904. 


176  MANAGEMENT   OF   DAIRY   PLANTS 

Example:  What  should  be  charged  for  unsalted  butter  when 
butter  containing  3  per  cent  of  salt  is  sold  for  30  cents  per 
pound? 

Answer: 

y  =  30  X  -         -  =  30.93  cents  per  pound. 
100  —  3 

If  allowance  is  made  for  cost  of  salt  in  the  salted  butter  and 
the  additional  shrinkage  in  moisture  of  the  same  butter,  then 
the  difference  between  the  value  of  salted  and  unsalted  butter 
will  be  slightly  decreased. 

3.  Salt  Control.  —  The  loss  of  salt  during  the  working  proc- 
ess is  a  factor  which  is  usually  given  but  very  little  attention. 
The  butter  when  worked  should  be  of  such  a  consistency  that 
it  will  most  readily  retain  the  salt.  By  the  careful  butter  maker 
the  loss  of  salt  may  be  reduced  to  less  than  5  per  cent.  How- 
ever, most  operators  will  lose  more.  If  one  ounce  of  salt  were 
added  to  each  pound  of  unsalted  butter  and  if  all  this  salt  were 
retained,  then  100  pounds  of  unsalted  butter  would  produce 
106.25  pounds  of  salted  butter.  The  salt  content  of  this  butter 

figured  in  per  cent  would  be  equal  to  -1- - — : =5-88  per  cent. 

106.25 

It  is  most  convenient  in  practical  work  to  use  the  amount  of 
butter  fat  in  the  churn  as  a  basis  for  the  amount  of  salt  to  add. 
The  per  cent  of  salt  which  should  thus  be  obtained  in  the 
finished  butter  if  no  salt  were  lost  during  the  process  of  working 
is  determined  as  follows: 

Let  y  represent  the  per  cent  of  salt  the  finished  butter 
should  contain. 

a  represent  the  amount  of  salt  in  ounces  added  to  each 
pound  of  butter  fat. 

m  represent  the  per  cent  moisture,  casein,  and  ash  contained 
in  the  finished  butter.  This  figure  is  reasonably  well  known 
by  the  butter  maker. 

f  represent  the  per  cent  of  fat  contained  in  the  finished 
butter. 


THE   BUTTER   OVERRUN  177 

Then, 

.,  16 

f  =  yX  - 
a 

yX  --  h  y  +  m  =  100 
a 

_  I0°  ~~  m 

^F+T 

Example: 

A  sample  of  salted  butter  contains  15.5  per  cent  of  moisture 
and  1.5  per  cent  of  casein  and  ash;  if  .6  ounce  were  added  for 
each  pound  of  butter  fat  how  much  salt  in  per  cent  would  be 
contained  in  the  finished  butter  if  no  loss  of  salt  occurred? 

Answer: 

y  =   100—        i^    ,  =  3  Per  Cent  °f  salt- 

76-+  I 

Suppose  a  sample  of  butter  which  had  been  salted  in  the 
proportion  of  .6  ounce  of  salt  per  pound  of  butter  fat  was 
found  to  contain  81  per  cent  fat,  15  1/2  moisture,  i  1/2  casein 
and  ash,  then  the  per  cent  of  salt  retained  in  the  butter  would 
be  equal  to 

~  I'5-)  x  <°°  -  6^  Per  cent 


« 

O1  X  T6^ 

For  determining  the  amount  of  salt  to  add  per  pound  of 
butter  fat  to  obtain  a  definite  per  cent  of  salt  in  the  finished 
butter  the  following  formula  may  be  used: 


16 
a  =  - 


100 — m 


y 

Example: 

How  much  salt  should  be  added  per  pound  of  butter  fat  to 
obtain  4  per  cent  in  the  finished  product  when  m  =  16  per  cent? 


I7&  MANAGEMENT   OF   DAIRY  PLANTS 

Answer: 

16 

a  = —  =  .8  ounce. 

100  —  io 

4 

The  amount  of  salt  to  add  for  every  hundred  pounds  of  fat 
may  be  quite  accurately  determined  in  accordance  with  the 
following  simple  formula,  if  the  fat  content  of  the  finished  but- 
ter is  reasonable  constant. 

TOO 

Per  cent  salt  desired  in  butter  X  - 

Per  cent  fat  in  butter 

Example: 

How  much  salt  should  be  added  per  hundred  pounds  of 
butter  fat  to  obtain  4  per  cent  in  the  finished  product  when  the 
fat  content  of  the  finished  butter  is  80  per  cent? 

Answer: 

.  100 

4  X  -T—  =  5  pounds  of  salt. 
So 

It  is  essential  that  the  butter  maker  tests  each  churning  for 
salt  in  order  to  gain  control  over  the  salt  content  of  the  butter. 
Many  operators  have  not  become  familiar  with  the  operation  of 
the  salt  test.  For  that  reason,  the  following  system  of  testing 
for  salt  is  outlined.1 

4.  The  Salt  Test.  —  For  determining  the  salt  content  in 
butter  the  following  reagents  and  glassware  will  be  required: 

A  silver  nitrate  solution 

A  potassium  chromate  solution  or  indicator 

One  500  c.  c.  flask 

One  250  c.  c.  graduate 

One  50  c.  c.  burette 

One  25  c.  c.  pipette 

One  2  ounce  drop  bottle  for  indicator 

Two  beakers  or  cups 

A.  The  Silver  Nitrate  Solution.  —  The  silver  nitrate  solu- 
tion if  held  for  any  great  length  of  time  will  gradually  undergo 

1  This  system  is  a  modification  of  the  official  method  of  testing  for  salt  in  butter. 


THE   BUTTER   OVERRUN  179 

chemical  changes  and  be  reduced  in  strength.  Such  changes 
take  place  very  readily  if  exposed  to  light.  It  is  therefore 
necessary  for  the  operator  to  prepare  his  own  solutions,  which 
should  be  prepared  in  rather  small  quantities.  Chemically  pure 
silver  nitrate,  AgNC>3,  should  be  used.  This  may  for  the  sake 
of  convenience  be  weighed  into  small  gelatin  capsules,  each 
capsule  containing  2.906  grams.  If  chemical  balances  are  not 
available  a  druggist  might  be  able  to  do  such  weighing;  if  not, 
the  capsules  of  silver  nitrate  might  be  supplied  by  a  manu- 
facturing chemist.  The  capsule  is  closed  and  wrapped  with  tin- 
foil to  exclude  the  light.  Such  capsules  have  been  kept  in  a 
dark,  dry  place  for  several  months  in  perfect  condition,  although 
it  is  recommended  that  the  silver  nitrate  be  put  up  in  small 
brown  bottles  if  to  be  kept  to  exceed  two  months. 

Preparing  the  Silver  Nitrate  Solution.  —  A  gelatin  capsule  is 
placed  in  the  flask  and  from  200  to  300  c.  c.  of  distilled  water 
heated  to  within  a  few  degrees  of  boiling  are  added.  The  flask 
is  shaken  with  a  gentle  rotary  motion  until  the  capsule  with  its 
contents  has  been  dissolved.  The  flask  is  then  wrapped  with 
brown  paper  in  order  to  exclude  the  light  and  it  is  left  in  a  dark 
place  until  the  temperature  of  its  contents  is  the  same  as  that 
of  the  room.  The  flask  is  then  filled  to  the  500  c.  c.  mark  with 
distilled  water  (condensed  steam)  of  room  temperature.  The 
solution  is  kept  in  a  place  where  light  is  excluded. 

B.  The    Potassium    Chromate    Solution. — Ten    grams    of 
potassium  chromate  are  dissolved  in  90  c.  c.  of  distilled  water. 

C.  Manipulation   of   the  Test.  —  A   representative   sample 
from  the  butter  to  be  tested  is  secured.    The  beaker  containing 
the  butter  is  placed  in  warm  water  until  the  butter  which  is 
being  constantly  stirred  is  of  the  consistency  of  a  sirup,  when  it 
is  transferred  to  ice  water  and  stirred  with  a  spatula  until  the 
butter  congeals.    Ten  grams  of  this  sample  are  weighed  into  a 
beaker.    To  this  is  added  about  25  c.  c.  of  hot  distilled  water. 
After  the  butter  has  been  thoroughly  dissolved  the  contents 
of  the  beaker  are  transferred  to  the  250  c.  c.  graduate.    The 
beaker  is  rinsed  several  times  with  distilled  water  which  is 
transferred  to  the  graduate,  using  about  25  c.  c.  of  water  at  a 


l8o  MANAGEMENT   OF   DAIRY   PLANTS 

time.  The  graduate  is  finally  filled  with  cold  distilled  water  to 
the  250  c.  c.  mark,  the  butter  fat  to  be  above  the  mark;  it  is 
closed  with  a  cork  stopper  and  shaken  gently  a  couple  of  times 
to  insure  that  the  contents  of  the  graduate  are  thoroughly  mixed. 

From  the  brine  solution  thus  prepared  25  c.  c.  are  taken 
with  the  pipette.  The  solution  should  be  of  nearly  room  tem- 
perature, yet  for  all  practical  purposes  from  10  to  20  degrees  of 
variation  will  not  affect  the  results.  The  sample  taken  with  the 
pipette  is  transferred  to  a  beaker.  Six  drops  of  the  potassium 
chromate  indicator  are  added  and  from  the  burette  is  added 
silver  nitrate  solution  until  the  color  changes  to  a  reddish  or 
brownish  tint.  The  reading  is  taken  from  the  burette  of  the 
number  of  c.  c.  of  silver  nitrate  required. 

The  silver  nitrate  solution  has  been  prepared  to  such  a 
strength  that  it  will  require  5  c.  c.  of  it  for  each  per  cent  of  salt. 
Therefore  if  it  required  15  c.  c.  of  the  solution  to  produce  the 
brownish  color,  the  butter  contains  3  per  cent  of  salt. 

No.  c.  c.  of  silver  nitrate  solution  required 
=  per  cent  of  salt 

in  butter. 

Curd  Content  of  Butter.  —  The  curd  of  the  butter,  however 
important  to  the  butter  maker  in  the  production  of  high  flavor, 
is  not  considered  by  the  manager  to  be  a  factor  of  great  impor- 
tance in  butter  overrun.  The  curd  content  of  the  butter  cannot 
be  changed  to  any  great  extent  without  injuring  the  quality  of 
the  butter.  A  butter  of  a  high  curd  content  will  usually  pos- 
sess poor  keeping  qualities. 


CHAPTER  XV 

MECHANICAL  LOSSES  AND  THEIR  INFLUENCE  ON 
BUTTER  OVERRUN 

MECHANICAL  losses  are  such  as  occur  during  the  various 
stages  of  the  manufacturing  process  and  in  the  testing  of  milk 
and  cream.  Mechanical  losses  are  not  absolutely  avoidable, 
yet  many  of  such  losses  may  often  be  materially  reduced. 

LOSSES  THAT  OCCUR  DURING  THE 
MANUFACTURING  PROCESS 

Fat  Losses  in  Skim  Milk. —  The  loss  of  butter  fat  in  the  skim 
milk  is  a  factor  of  importance  to  creameries  receiving  whole 
milk.  In  accordance  with  Danish  experiments,1  the  aver- 
age loss  of  fat  in  skim  milk  based  on  a  series  of  experiments 
with  three  different  types  of  factory  cream  separators  amounts 
to  about  .07  per  cent.  It  will  probably  be  close  to  the  actual 
loss  if  it  is  estimated  at  .1  per  cent  for  the  American  creameries. 

Washburn,  Dahlberg,  Sorensen,  and  M.  P.  Mortensen 2 
found  that  1.64  per  cent  of  the  total  fat  received  at  the  factory 
was  lost  in  the  skim  milk. 

For  ascertaining  the  amount  of  fat  lost  in  the  skim  milk,  the 
amount  of  skim  milk  obtained  is  not  conveniently  determined 
by  weighing,  but  it  may  readily  be  calculated.  For  that  pur- 
pose let  m  represent  pounds  of  whole  milk  to  be  skimmed,  s, 
pounds  of  skim  milk,  c,  pounds  of  cream  obtained,  p,  the  per 
cent  of  fat  contained  in  the  whole  milk,  pi,  the  per  cent  of 
fat  contained  in  the  cream,  and  a,  the  per  cent  of  fat  in  the 
skim  milk. 

1  Beretning  No.  70  fra  den  Kgl.    Veterinaer  og  Landbohojskoles  Laboratorium 
for  landokonomiske  Forsog,  IQIO. 

2  Bulletin  177,  Minnesota,  1918. 

181 


l82  MANAGEMENT   OF   DAIRY   PLANTS 

The  value  of  s  is  then  determined  as  follows: 
m  X  p  =  (m  —  s)  pi  +  s  X  a  or 

s  =  m(pi  — P) 
Pi  — a 

Or  pounds  skim  milk  obtained  =  pounds  whole  milk  X 
per  cent  fat  in  cream  —  per  cent  fat  in  whole  milk 
per  cent  fat  in  cream  —  per  cent  fat  in  skim  milk 

This  formula  becomes  practical,  inasmuch  as  the  weight  of 
the  whole  milk  skimmed  is  always  known,  and  the  test  of  the 
cream  and  skim  milk 'obtained  as  well  as  the  test  of  the  whole 
milk  are  known  figures. 

As  the  weight  of  the  cream  in  a  whole  milk  plant  is  usually 
determined  with  difficulty,  the  above  formula  may  also  be  of 
value  in  determining  the  amount  of  cream  obtained  from  the 
milk  as  c  =  m  — s.  Or  without  figuring  the  amount  of  skim 
milk,  the  amount  of  cream  may  be  determined  from  the  fol- 
lowing formula: 

c  =  m(p  — a) 
Pi- a 

Or  pounds  cream  obtained  =  pounds  whole  milk  X 
per  cent  fat  in  whole  milk  —per  cent  fat  in  skim  milk 
per  cent  fat  in  cream  —  per  cent  fat  in  skim  milk 

Example  I.  —  Determine  the  amount  of  fat  contained  in  the 
skim  milk  obtained  from  skimming  30,000  pounds  of  milk 
testing  3.6  per  cent  of  fat  when  the  cream  obtained  tests  33.6 
per  cent  of  fat  and  the  skim  milk  .1  per  cent  of  fat. 
Answer: 

s  =  30,000(33.6-3.6)  =  26?865<6 

33-6-. i 
26,865.67  X  .001  *=  26.87  pounds  of  butter  fat. 

Example  II.  —  Determine  the  overrun  obtained  in  a  cream- 
ery for  a  day  when  they  received  20,000  pounds  of  4  per  cent 


MECHANICAL   LOSSES  183 

milk  from  which  was  produced  35  per  cent  cream.    The  loss  of 
butter  fat  in  skim  milk  was  .1  per  cent.    The  cream  was  made 
into  butter  containing  80  per  cent  of  butter  fat. 
Answer: 

20,000  (4  —  .!) 
c  = =  2,234.96  pounds. 

oo      * 

The  amount  of  butter  fat  used  for  making  the  butter  is  the 
amount  contained  in  the  cream  or 

2234.96  X  -35  =  782-236  pounds. 

The  overrun  is  determined  on  amount  of  butter  fat  pur- 
chased as  whole  milk.  This  overrun  is  therefore  equal  to 

(782.236  X  100/80 — 20,000  X  4/ioo)  vx 

-. X  100  =  22.224. 

20,000— -4/100 

Had  no  butter  fat  been  lost  in  the  skim  milk  then  the  over- 
run obtained  would  have  been  equal  to 

100  —  80  v> 

-  X  TOO  or  25  per  cent. 
80 

Therefore  the  overrun  due  to  the  loss  of  .1  of  a  per  cent  fat 
in  the  skim  milk  has  been  reduced  2.776  per  cent.  It  will  be 
noted  from  Table  X  that  this  reduction  in  overrun  is  decreased 
slightly  as  the  fat  content  of  the  butter  increases.  It  is  in- 
creased as  the  fat  content  of  the  whole  milk  is  decreased 
(Table  XI),  and  is  decreased  as  the  richness  of  cream  decreases 
(Table  XII). 


i84 


MANAGEMENT  OF  DAIRY  PLANTS 


TABLE  X 


TABLE  ILLUSTRATING  HOW  THE  FAT  CONTENT  OF  THE  RESULTING  BUTTER 
INFLUENCES  THE  REDUCTION  IN  PER  CENT  OF  OVERRUN  WHEN  .1  OF 
I  PER  CENT  FAT  IS  LOST  IN  THE  SKIM  MlLK 


Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

overrun 

reduction 

fat  in 

fat  lost 

fat  in 

fat  in 

Per  cent 

had  no  loss 

in  overrun 

whole 

in  skim 

cream 

butter 

overrun 

occurred  in 

due  to  loss 

milk 

milk 

obtained 

skim  milk 

in  skim  milk 

4 

.1 

35 

80 

22.  224 

25.000 

2.770 

4 

.1 

35 

81 

20.725 

23-457 

2.732 

4 

.1 

35 

82 

19.234 

21.951 

2.717 

4 

.1 

35 

83 

17.807 

20.482 

2.675 

4 

.1 

35 

84 

16.406 

19.048 

2.642 

4 

.1 

35 

85 

I5-035 

17.647 

2.621 

4 

.1 

35 

90 

8.644 

ii.  in 

2.467 

TABLE  XI 


TABLE  ILLUSTRATING  HOW  THE  FAT  CONTENT  OF  THE  WHOLE  MILK  IN- 
FLUENCES THE  REDUCTION  IN  OVERRUN  WHEN  .1  OF  i  PER  CENT  FAT  is 

LOST  IN  THE  SKIM  MlLK 


Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

overrun 

reduction 

fat  in 

fat  lost 

fat  in 

fat  in 

Per  cent 

had  no  loss 

in  overrun 

whole 

in  skim 

cream 

butter 

overrun 

occurred  in 

due  to  loss 

milk 

milk 

obtained 

skim  milk 

in  skim  milk 

4 

.1 

35 

80 

22.224 

25 

2.776 

3-5 

.  i 

35 

80 

21.774 

25 

3.226 

3 

.1 

35 

80 

21.179 

25 

3-821 

MECHANICAL   LOSSES 


TABLE  XII 

TABLE  ILLUSTRATING  HOW  THE  FAT  CONTENT  OF  RESULTING  CREAM  IN- 
FLUENCES THE  REDUCTION  IN  OVERRUN  WHEN  .1  OF  i  PER  CENT  FAT  is 

LOST  IN  THE  SKIM  MlLK 


Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

overrun 

reduction 

fat  in 

fat  lost  in 

fat  in 

fat  in 

Per  cent 

had  no  loss 

in  overrun 

whole 

skim 

cream 

butter 

overrun 

occurred  in 

due  to  loss 

milk 

milk 

obtained 

skim  milk 

in  skim  milk 

4 

.1 

40 

80 

22.180 

25 

2.820 

4 

.1 

35 

80 

22.224 

25 

2.776 

4 

.1 

30 

80 

22.283 

25 

2.717 

4 

.1 

25 

80 

22.365 

25 

2.635 

4 

.1 

20 

80 

22.487 

25 

2.513 

Fat  Losses  in  Buttermilk.  —  The  loss  of  fat  in  buttermilk 
will  affect  the  overrun  to  a  less  degree  than  the  loss  of  butter 
fat  in  skim  milk,  because  the  proportion  of  buttermilk  is  small 
as  compared  with  the  proportion  of  skim  milk.  The  average 
per  cent  of  fat  lost  in  the  buttermilk  during  a  series  of  ex- 
periments carried  on  by  the  Iowa  Experiment  Station  *  under 
ordinary  factory  conditions  was  .168  per  cent  from  sour  cream 
pasteurized  while  sweet.  The  loss  from  churning  the  same 
kind  of  cream  raw  was  .198  per  cent.  Sour  cream  pasteurized 
by  flash  heat  produced  a  loss  of  .207  per  cent.  The  same  kind 
of  cream  churned  raw  produced  a  loss  of  .152  per  cent.  Sour 
cream  pasteurized  by  the  holding  method  or  vat  method 
caused  a  loss  of  .225  per  cent  while  the  same  kind  of  cream 
churned  raw  produced  a  loss  of  only  .098  per  cent. 

In  accordance  with  Minnesota  experiments  2  the  buttermilk 
retained  0.93  per  cent  of  the  total  fat  received  when  handling 
whole  milk. 


1  Bui.  156,  Iowa  Experiment  Station,  1918. 

2  Bulletin  177,  Minnesota  Ex.  St.,  1918. 


l86  MANAGEMENT   OF   DAIRY  PLANTS 

The  amount  of  fat  lost  in  the  buttermilk  is  readily  determined, 
as  the  weight  of  the  cream  churned  is  a  known  quantity  and  the 
weight  of  the  butter  obtained  is  also  known.  The  weight  of  the 
buttermilk  in  which  the  loss  occurs  is  the  difference  between  the 
weight  of  the  cream  churned  and  the  weight  of  unsalted  butter 
obtained. 

Example.  Determine  the  amount  of  butter  fat  lost  in  the 
buttermilk  from  churning  2,000  pounds  of  cream  when  700 
pounds  of  butter  containing  3  per  cent  of  salt  is  obtained,  and 
the  buttermilk  contains  .2  per  cent  of  fat. 

Answer:  (2,000  — 700  X  .97)  .002  =  2.642  pounds. 

A  formula  similar  to  that  used  for  determining  fat  loss  in 
skim  milk  is  also  applicable  in  this  connection.    The  following 
formula  may  be  used  when  unsalted  butter  is  concerned: 
c(F^Pl) 
F-f 

In  the  foregoing  b  is  to  represent  pounds  of  buttermilk  ob- 
tained, f,  per  cent  of  fat  in  the  buttermilk,  and  F,  the  per  cent 
of  fat  in  the  butter.  These  factors  are  not  absolutely  correct  in 
practical  applications,  as  the  water  used  for  washing  the  butter 
may  have  a  slight  influence  on  the  moisture  content  of  the  but- 
ter; however,  not  to  such  an  extent  that  it  will  be  of  importance 
for  the  creamery  manager  to  consider. 

It  will  be  noticed  from  Table  XIII  that  the  loss  of  .1  per  cent 
of  fat  in  the  buttermilk  reduces  the  overrun  .2  per  cent  when  the 
fat  content  of  cream  used  is  35  per  cent  and  of  the  butter  manu- 
factured 80  per  cent.  This  factor  decreases  slightly  as  the  fat 
content  of  the  butter  increases  and  it  increases  as  the  fat  con- 
tent of  the  cream  decreases  (Table  XIV). 

Miscellaneous  Manufacturing  Losses.  —  Such  losses  occur 
in  transferring  cream  from  the  receiving  cans  to  vats,  from 
vats  to  churns,  and  in  handling  cream  or  butter.  They  should 
not  normally  exceed  .2  of  one  per  cent  of  butter  fat  received.  In 
accordance  with  Minnesota  experiments  l  about  one-half 
of  one  per  cent  of  the  total  fat  received  was  lost  in  vats,  pipes, 

1  Bulletin  177,  Minnesota  Ex.  St.,  1918. 


MECHANICAL   LOSSES 


etc.,  where  handling  whole  milk.  In  handling  small  amounts 
and  by  transferring  for  pasteurization  these  losses  may  be 
slightly  increased;  however,  not  at  any  time  in  excess  of  .5  per 
cent.  A  loss  of  .2  per  cent  will  reduce  the  overrun  .25  per  cent 
when  considering  that  the  fat  content  of  the  butter  is  80  per 
cent.  If  the  fat  content  of  butter  becomes  less,  this  loss  will 
slightly  increase  the  loss  in  overrun  and  vice  versa. 

TABLE  XIII 

TABLE  ILLUSTRATING  HOW  THE  FAT  CONTENT  OF  RESULTING  BUTTER 
INFLUENCES  THE  REDUCTION  IN  OVERRUN  WHEN  .1  OF  i  PER  CENT  FAT 
is  LOST  IN  BUTTERMILK 


Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

reduction 

fat  lost  in 
butter- 

fat in 
cream 

fat  in 
butter 

Per  cent 
overrun 

overrun  had  no 
loss  occurred  in 

in  overrun 
due  to  loss 

milk 

buttermilk 

in  buttermilk 

.1 

35 

80 

24  .  800 

25.000 

.2 

.1 

35 

85 

I7-450 

17.647 

.197 

.1 

35 

90 

10.917 

ii.  in 

.194 

TABLE  XIV 

TABLE  ILLUSTRATING  HOW  THE  FAT  CONTENT  OF  CREAM  INFLUENCES  THE 
REDUCTION  IN  OVERRUN  WHEN  .1  OF  i  PER  CENT  FAT  is  LOST  IN  BUTTER- 
MILK 


Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

reduction 

fat  lost  in 

fat  in 

fat  in 

Per  cent 

overrun  had  no 

in  overrun 

butter- 

cream 

butter 

overrun 

loss  occurred  in 

due  to  loss 

milk 

buttermilk 

in  buttermilk 

.1 

40 

80 

24.8425 

25 

•1575 

.1 

35 

80 

24  .  8000   - 

25 

.2000 

.1 

30 

80 

24.7400 

25 

.2600 

.1 

25 

80 

24.6560 

25 

•3440 

.1 

20 

80 

24.5300 

25 

.4700 

1 88  MANAGEMENT   OF   DAIRY  PLANTS 

The  following  example  will  illustrate  how  miscellaneous 
losses  may  be  determined. 

Example: 

2,000  pounds  of  30  per  cent  cream  were  purchased.  From 
this  were  manufactured  740  pounds  of  butter  containing  80  per 
cent  of  butter  fat  and  3  per  cent  of  salt.  The  buttermilk  con- 
tained .2  per  cent  of  fat.  Determine  miscellaneous  losses. 

Answer: 

Amount  of  fat  lost  in  buttermilk  is  equal  to  (2,000  —  740 
X  .97)  X  .002  =  2.5644  pounds. 

Amount  of  butter  fat  lost  due  to  miscellaneous  losses  is  equal 
to 

(2,000  X  .30  —  2.5644)  -  740  X  .80  =  54356  pounds. 

S.4^6  X  ioo 

-  =  .0056  per  cent. 
2000  X  .30 


LOSSES  DUE  TO  INACCURACY  IN  WEIGHING 
AND  TESTING 

Losses  Due  to  Inaccuracy  in  Weighing.  —  It  should  hardly 
be  necessary  to  consider  such  losses;  nevertheless  they  fre- 
quently occur,  and  the  manager  should  be  ready  to  guard 
against  them.  Often  the  receiving  scales  on  which  the  milk  or 
cream  is  weighed  are  not  as  sensitive  as  they  should  be.  This 
may  be  due  to  the  buying  of  poor  scales  or  the  scales  may  not  be 
kept  clean  and  in  working  order.  Scales  on  which  cream  is 
weighed  should  always  be  sensitive  to  one-fourth  of  a  pound. 
It  is  possible  to  save  ten  dollars  on  the  first  cost  by  buying 
second-grade  scales,  but  it  is  also  possible  for  such  scales  to  lose 
several  hundred  dollars  annually  to  the  creamery.  Poor 
scales  are  too  expensive  at  any  price,  but  when  good  scales  have 
been  purchased  it  is  the  duty  of  the  manager  to  see  to  it  that 
they  are  always  kept  in  good  working  order.  The  scales  should 
be  balanced  several  times  daily  and  once  or  twice  daily  they 
should  be  tested  with  a  standard  weight.  A  fifty-pound  stand- 
ard weight  is  very  satisfactory  for  that  purpose. 


MECHANICAL   LOSSES 


i89 


Losses  Due  to  Inaccuracy  in  Testing.  —  The  testing  de- 
partment is  perhaps  the  department  which  experiences  greater 
difficulty  than  any  other  department  in  giving  satisfaction.  It 
should  also  be  realized  by  the  managers  that  great  losses  may 
occur  in  that  department  unless  properly  checked.  Form  XVI 
may  serve  as  a  convenient  factory  report  for  checking,  not 
merely  the  losses  due  to  testing  and  weighing,  but  other  me- 
chanical losses  as  well. 

FORM  XVI 

CHURN  RECORD 


Vat 
no. 

Lbs. 
cream 

Lbs. 
starter 

Vat 
teat 

Lbs.  fat 
vat  test 

Lbs.  fat 
ind.  test 

Butter 
churned 

Over 

run 

Fat 

Mois- 
ture 

Casein 

Salt 

Ash 

" 

The  principal  reasons  for  errors  in  the  testing  department 
are  inaccurate  glassware,  inaccurate  measure  or  weight  of 
sample,  improper  care  of  samples,  and  improper  method  of 
reading  the  tests  and  general  carelessness  on  the  part  of  the 
operator. 

i.  Inaccurate  Glassware.  — All  glassware  should  be  properly 
calibrated  before  it  is  brought  into  service.  Several  states 
have  laws  making  it  a  criminal  offense  to  use  inaccurate  glass- 
ware for  testing.  Even  without  such  laws  it  should  be  to  the 
interest  of  all  creamery  operators  to  assure  themselves  of  the 
accuracy  of  the  glassware  they  are  using.  It  was  found  by  the 


IQO  MANAGEMENT   OF   DAIRY   PLANTS 

Indiana  Station  l  that  21  4/10  per  cent  of  the  cream-test  bottles 
used  in  Indiana  creameries  were  incorrect;  the  maximum  error 
was  10  per  cent. 

2.  Inaccurate   Measure    or    Weight    of  Sample.  —  Incorrect 
measure  or  weight  of  samples  may  be  due  to  an  inaccurate 
pipette,  or  to  balances  that  are  not  sensitive,  or  to  carelessness 
on  the  part  of  the  operator. 

When  the  sample  is  measured,  as  is  done  when  testing  milk, 
the  pipette  used  should  be  calibrated  and  if  found  correct 
it  is  evident  that  it  will  measure  out  the  correct  amount,  if  the 
pipette  is  also  kept  properly  cleaned.  The  weights  should  be 
tested  against  standard  weights.  It  is  often  convenient  to 
have  a  standard  9  gram  or  18  gram  weight.  This  weight  is  not 
used  for  any  other  purpose  than  that  of  testing  the  weights 
which  are  in  daily  use.  The  state  dairy  commissioners  are 
usually  willing  to  test  weights  for  operators  in  their  respective 
states. 

Balances  should  be  sensitive  to  one  centigram.  If  the  bal- 
ances are  not  sensitive  it  usually  results  in  too  high  tests  and  a 
loss  to  the  creamery.  To  keep  balances  sensitive  they  should 
be  properly  cleaned  and  kept  in  a  dry  place,  preferably  in  a 
special  case  provided  therefor.  A  balance  constructed  for 
carrying  several  bottles  at  each  weighing  is  less  sensitive  than 
one  constructed  for  carrying  only  one  or  two  bottles. 

The  operator  when  weighing  out  samples  of  cream  should 
not  sacrifice  accuracy  for  speed.  It  is  considered  that  an  ex- 
perienced operator  can  test  from  200  to  300  cream  samples 
daily  and  do  accurate  work. 

3.  Improper  Care  of  Samples.  —  A  composite  cream  sample 
should  never  be  considered  accurate  unless  cream  from  which 
the  sample  is  prepared  is  very  thin.    A  composite  sample  taken 
from  cans  containing  cream  varying  greatly  in  fat  content  will 
naturally  be  far  from  correct,  as  the  sampler  used  will  discharge 
less  of  the  richer  than  of  the  thinner  cream.    Furthermore,  if 
the  sampler  is  not  thoroughly  cleaned  each  time  when  it  is 
brought  from  the  rich  to  the  thin  cream,  it  is  quite  possible  that 

i  Bui.  145,  Indiana  Agr.  Experiment  Station,  1910. 


MECHANICAL   LOSSES  191 

rich  cream  remaining  in  the  tube  will  be  discharged  together 
with  part  of  the  thinner  sample.  The  safest  system  to  adopt  is 
that  of  taking  a  sample  from  each  can  of  cream,  testing  it 
separately,  and  cleaning  the  sampler  in  warm  water  for  each 
sample  taken.  But  if  it  is  found  convenient  to  take  only  one 
sample  from  two  or  more  cans  of  cream,  then  the  cream  should 
first  be  thoroughly  mixed  in  a  receiving  vat  or  can. 

By  daily  testing  the  manager  is  enabled  to  check  the  mechan- 
ical losses  daily  and  thus  save  money  for  the  creamery.  It 
has  been  the  experience  of  the  practical  manager  that  the 
cream  samples  usually  increase  in  per  cent  of  fat  by  age.  The 
Indiana  Experiment  Station  has  found  that  exposure  of 
samples  for  two  weeks  to  the  receiving-room  temperature  in 
summer  caused  sufficient  evaporation  to  raise  the  test  3.5  per 
cent  even  in  bottles  with  a  tight  seal.  When  samples  were  kept 
in  loosely  sealed  bottles  there  was  a  rise  of  i  per  cent  in  the  test 
of  the  samples  kept  in  the  refrigerator  and  4.5  per  cent  in  the 
test  of  the  samples  kept  on  the  receiving  platform.  In  open 
bottles  the  test  of  the  samples  in  the  refrigerator  rose  3.5  per 
cent,  and  that  of  the  samples  on  the  receiving  platform  in- 
creased 10.5  per  cent. 

Table  XV *  illustrates  the  financial  loss  sustained  by  a 
creamery  taking  composite  samples  under  the  above-stated  con- 
ditions. These  calculations  are  based  on  the  creamery  receiv- 
ing 20,000  pounds  of  fat  per  month.  The  loss  of  fat  is  figured 
on  39  1/2  per  cent  cream;  the  price  of  fat  is  calculated  at  25 
cents  per  pound. 

1  Bui.  145,  Indiana  Agr.  Experiment  Station,  1910. 


IQ2 


MANAGEMENT   OF   DAIRY   PLANTS 


TABLE  XV 


Increase  in 

Place  of  storage 

Fat, 
per 

Av. 

single 

composite 
test, 

Pounds  fat 
paid  too 

Creamery 
lost, 

cent 

test 

per  cent 

much 

dollars 

Ice  Box 

Tight  seal 

39-5 

none 

none 

none 

Loose  seal 

40.5 

i  .0 

506 

126.50 

Open  bottle 

43-o 

3-5 

1,772 

443.00 

Receiving  Platform 

39-5 

Tight  seal 

43.0 

3-5 

1,772 

443.00 

Loose  seal 

44.0 

4-5 

2,278 

569-50 

Open  bottle 

50.0 

10.5 

5,3i6 

1,329.00 

4.  Improper  Method  of  Reading  the  Test.  —  In  order  to 
comply  with  the  Babcock  system  of  testing  the  tests  should 
be  read  at  a  temperature  at  which  the  melted  butter  fat  has 
a  specific  gravity  of  .9.  This  temperature  varies  somewhat 
with  the  composition  of  the  butter  fat,  but  is  not  far  from 
120°  F.,  a  temperature  ranging  from  120°  F.  to  140°  F.  is 
usually  recommended.  The  Iowa  Experiment  Station  has 
obtained  satisfactory  results  when  reading  the  tests  at  a  tem- 
perature of  130°  F.  For  the  purpose  of  obtaining  a  definite 
temperature  the  test  bottles  should  be  placed  in  a  water  bath 
at  130°  F.  for  about  fifteen  minutes  before  the  reading  is  taken. 

In  accordance  with  experiments  conducted  by  Webster 
and  Gray  1  the  average  increase  in  reading  a  39.8  per  cent 
cream  test  when  the  temperature  is  raised  from  110°  F.  to 
140°  F.  is  0.5  per  cent  (Table  XVI). 


i  Bui.  No.  58,  B.  A.  I.,  1904. 


MECHANICAL   LOSSES 


193 


TABLE  XVI 
INFLUENCE  OF  TEMPERATURE  ON  READING  OF  TEST 


Style  of  bottle 

140°  to 
130°  F. 

130°  to 

120°  F. 

I2O°  tO 
110°  F. 

140°  to 
110°  F. 

30%  o  inch  o  gram 

Per  Cent 

O    I 

Per  Cent 

O.  I 

Per  Cent 

o.oz 

Per  Cent 

O    2<? 

Same  doubled 

.  2 

.  2 

.  i 

.  e 

50%,  6  inch,  1  8  gram  

<? 

.  2 

.0 

•4 

50%,  6  inch,  18  gram  

.  2 

.  2 

.  2 

.6 

Babcock  recommends  that  a  milk  test  should  be  read  from 
the  top  of  the  meniscus  to  the  bottom  of  the  fat  column.  D.  E. 
Bailey,  Iowa  Experiment  Station  1  found  that  the  Babcock  test 
for  milk  when  read  from  the  top  of  the  upper  meniscus  to  the 
bottom  of  the  lower  meniscus  gave  results  which  were  higher 
than  those  obtained  by  the  gravimetric  (Roese-Gottlieb) 
method.  On  the  average  of  190  comparisons  the  difference 
amounted  to  0.06  per  cent.  Webster  and  Gray  2  recommend 
reading  a  cream  test  as  follows: 

1.  See  that  line  between  fat  and  water  is  straight,  and  read 
from  bottom  to  extreme  top  of  fat  column. 

2.  Read  the  depth  of  meniscus  and  deduct  four-fifths  of  it 
from  previous  reading.    A  careful  operator  can  estimate  this. 

3.  Add  0.2  per  cent  to  the  result. 

4.  For  9  gram  sample,  double  reading  before  adding  0.2 
per  cent. 

5.  Read  at  a  temperature  close  to  120°  F. 

6.  If  bottles  are  placed  in  bath  to  regulate  temperature, 
allow  them  to  stand  for  fifteen  minutes  before  reading. 

Farrington  and  Woll 3  recommend  that  the  reading  of  a  cream 
sample  be  taken  from  the  bottom  of  the  fat  column  to  the  bot- 
tom of  the  meniscus  and  that  the  reading  be  taken  at  140°  F. 

1  Journal  of  Dairy  Science,  Vol.  II,  No.  5,  September,  1919. 

2  Bui.  58,  B.  A.  I.,  1904. 

3  Testing  Milk  and  Its  Products,  1910. 


MANAGEMENT   OF   DAIRY   PLANTS 


The  Indiana  Experiment  Station  l  suggests  that  one-third 
of  the  meniscus  be  included,  and  readings  taken  in  this  way, 
checked  with  the  gravimetric  fat  estimation.  It  further 
recommends  that  glymol  colored  with  alkanet  root  be  added 
immediately  after  the  last  centrifuging. 
Glymol,  being  lighter  than  the  butter  fat, 
will  float  on  top;  the  meniscus  is  formed 
from  the  glymol  and  the  line  between  the 
fat  column  and  the  glymol  is  straight,  so 
the  reading  can  be  taken  with  greater  de- 
gree of  accuracy. 

Professor  C.  H.  Eckles  first  conceived  the 
idea  of  leveling  the  fat  column  when  testing 
cream.  He  recommended  the  addition  of 
amyl  alcohol  colored  with  fuchsine.  As  al- 
cohol is  a  fat  solvent,  Farrington  recom- 
mended the  saturation  of  the  alcohol  with 
fat  before  using  it.  As  it  is  also  poisonous 
and  the  odors  therefrom  injurious  to  health, 
glymol  should  be  recommended  for  labora- 
tory and  for  commercial  work. 

The  author  has  obtained  satisfactory  re- 
sults when  reading  the  fat  column  of  a 
cream  test  from  d  to  b  (Fig.  25),  the  reading 
taken  at  130°  F.  It  is  most  satisfactory, 
however,  to  level  the  fat  column,  as  that 
overcomes  all  disagreements  in  reference  to 
the  reading. 

It  cannot  be  too  strongly  emphasized  that 
great  care  should  be  taken  in  reading  the 
cream  test.    With  the  glassware  used  for 
the  Babcock  system  it  is  practically  impos- 
sible to  read  closer  than  to  one-fourth  of 
one  per  cent  and  by  being  a  little  careless  the  test  is  readily 
overread  or  underread  one  per  cent.    One  per  cent  overreading 
on  a  30  per  cent  cream,  from  which  butter  containing  80  per 

1  Bui.  145,  Indiana  Experiment  Station,  1910. 


FIG.  25.  —  Reading 
a  butter-fat  test. 


MECHANICAL   LOSSES  195 

cent  fat  is  manufactured  will  reduce  the  overrun  about  4.03 
per  cent. 

The  total  mechanical  losses  are  summarized  by  Washburn  1 
as  follows:  "The  creamery  receiving  cream  lost  about  1.4  per 
cent  of  the  total  butter  fat  received  during  the  process  of  manu- 
facture and  saved  about  98.6  per  cent.  The  creamery  receiv- 
ing milk  lost  about  3.17  per  cent  of  the  butter  fat  during  the 
process  of  manufacture  and  saved  about  96.83  per  cent. 

PER  CENT  OVERRUN  WHICH  MAY  BE 
LEGALLY  OBTAINED 

This  is  determined  primarily  by  the  state  and  Federal  butter 
standards.  A  moisture  standard  of  16  per  cent  and  a  fat  stand- 
ard of  80  per  cent  may  under  normal  conditions  be  considered 
identical,  as  butter  containing  16  per  cent  moisture,  2.8  per 
cent  salt,  and  1.2  per  cent  casein  also  contains  80  per  cent  of 
butter  fat.  More  casein  may  be  incorporated,  but  incorpora- 
tion of  a  high  per  cent  of  casein  decreases  the  keeping  qualities 
of  the  butter.  A  limited  number  of  markets  would  accept  butter 
containing  a  higher  per  cent  of  salt,  but  the  manufacturer 
who  makes  an  attempt  to  use  salt  as  an  adulterant  has  lost 
all  regard  for  quality  and  is  sacrificing  his  business  when 
he  makes  such  attempt.  Salt  is  added  to  the  butter  for 
the  sake  of  aiding  it  in  flavor  and  not  for  the  sake  of 
adulterating  it. 

It  is  evident  that  under  a  mere  moisture  standard  the  un- 
scrupulous manufacturer  might  adulterate  his  butter  with 
casein  and  salt  and  in  that  way  obtain  a  high  per  cent  of  over- 
run and  yet  manufacture  an  article  of  butter  which  the  law 
would  recognize  as  legal.  If  the  butter  standard  is  based 
on  the  fat  content  of  the  butter  then  it  becomes  compara- 
tively easy  to  estimate  a  possible  theoretical  overrun.  The 
following  calculations  are  based  on  an  80  per  cent  butter-fat 
standard. 

1  Bulletin  177,  Minnesota  Ex.  St.,  1918. 


196  MANAGEMENT   OF  DAIRY  PLANTS 

A  butter  containing  80  per  cent  butter  fat  should,  if  no  losses 
occur,  produce 

(100  —  80)  ioo 

-  or  25  per  cent  overrun. 

80 

Considering  that  a  creamery  receives  gathered  cream  con- 
taining 35  per  cent  of  butter  fat,  from  which  is  manufactured 
butter  containing  80  per  cent  of  butter  fat,  the  reduction  in 
overrun  due  to  .2  per  cent  loss  in  the  buttermilk  is  equal  to 
.4  per  cent l  on  the  overrun.  Miscellaneous  losses  figured  at  .2 
per  cent  will  reduce  the  overrun  .25  per  cent.  Considering 
these  two  losses,  we  might  expect  a  theoretical  legal  overrun  of 
25  -(.4+  .25)  =  24.35  Per  cent. 

This  overrun  is  higher  than  could  be  expected  in  general 
practice,  even  though  no  avoidable  loss  would  occur,  as  it  is 
well  known  that  it  is  impossible  to  produce  butter  which  al- 
ways would  contain  even  80  per  cent  of  butter  fat.  It  is 
furthermore  recognized  that  two  or  more  samples  may 
be  taken  from  butter  of  the  same  churning,  but  packed  in 
different  containers,  and  even  from  the  same  container  and 
yet  differ  in  excess  of  one-half  of  one  per  cent  in  fat  content. 
It  is  therefore  only  fair  to  consider  that  if  we  have  an  80  per 
cent  fat  standard,  the  butter,  in  accordance  with  our  method  of 
analysis,  should  contain  about  81  per  cent  of  fat.  This  will 
reduce  the  overrun  1.54  per  cent,  which,  subtracted  from  24.35 
per  cent,  leaves  an  overrun  of  22.81  per  cent  for  gathered  cream 
butter.  If  whole  milk  were  received  and  the  loss  of  butter  fat 
in  the  skim  milk  amounted  to  .1  per  cent,  then  the  overrun 
would  still  be  decreased  to  the  amount  of  2.73  per  cent,  or  the 
overrun  would  in  that  case  be  20.08  per  cent. 

Losses  Due  to  Butter  Shrinkage.  —  In  the  foregoing  discus- 
sion no  reference  has  been  made  to  shrinkage  of  butter  from 
churn  to  dealer;  this  shrinkage  varies  in  accordance  with 
workmanship  of  the  butter,  the  time  of  holding,  and  the  tem- 
perature at  which  it  has  been  held.  A  creamery  allowing  8 

i  Table  XIII. 


MECHANICAL   LOSSES  197 

ounces  of  overweight  on  63  pounds  of  fresh  butter  containing 
80  per  cent  of  butter  fat  is  losing  about  one  per  cent  on  the 
overrun.  Hibbard  and  Hobson  l  estimate  that  a  tub  of  butter 
loses  two-fifths  of  a  pound  of  moisture  on  the  way  to  market. 
Guthrie  2  reports  a  shrinkage  of  0.29  per  cent  on  TOO  tubs  of 
butter  held  in  cold  storage  for  134  days  at  o°  to-io°  F. 

1  Bulletin  270,  Wisconsin,  1916. 

2  Journal  of  Dairy  Science,  Vol.  I,  No.  2,  1917. 


CHAPTER  XVI 
COST  OF  MANUFACTURING  BUTTER 

THE  items  to  be  considered  in  determining  the  cost  of  manu- 
facturing butter  have  been  discussed  in  the  foregoing  chapters, 
and  may  be  briefly  summarized  as  follows: 

Labor,  direct  and  indirect. 

Coal  and  power. 

Ice  and  refrigeration. 

Water. 

Butter  tubs,  boxes,  liners,  and  wrappers. 

Salt,  color,  washing  powder,  and  miscellaneous  supplies. 

Rent. 

Interest  on  investment. 

Insurance. 

Taxes. 

Depreciation. 

Repairs. 

It  is  only  by  exhaustive  study  of  each  factor  which  adds  to  the 
manufacturing  cost  that  a  manager  will  be  able  to  reduce  such 
cost  to  the  minimum. 

The  size  of  the  creamery  is  one  of  the  primary  factors  that 
influence  the  cost  of  manufacturing.  If  the  receipt  of  raw 
material  is  small  the  cost  of  manufacturing  a  pound  of  butter 
will  naturally  be  high  due  to  fixed  expenses  which  cannot  be 
reduced.  Wright l  found  that  the  cost  of  manufacturing  a 
pound  of  butter  in  the  Iowa  creameries  was  as  follows: 

i  i8th  Annual  Report,  1904,  of  the  Iowa  State  Dairy  Commissioner. 
198 


COST   OF   MANUFACTURING   BUTTER 


199 


Creamery  making 
Creamery  making 
Creamery  making 
Creamery  making 
Creamery  making 
Creamery  making 

125,000  pounds 

Creamery  making  150,000  pounds 
Creamery  making  175,000  pounds 
Creamery  making  200,000  pounds 

and  above 


40,000  pounds 
50,000  pounds 
60,000  pounds 
70,000  pounds 
80,000  pounds 
90,000  pounds  to 


cost  of  making  is  4  cents 

cost  of  making  12  3.4  " 

cost  of  making  is  3.0  " 

cost  of  making  is  2.88  " 

cost  of  making  is  2.66  " 

cost  of  making  is  2.00  " 

cost  of  making  is  i  .85  " 

cost  of  making  is  i  .65  " 

cost  of  making  is  1.44  " 


Hibbard  and  Hobson  l  found  the  cost  of  making  a  pound  of 
butter  in  Wisconsin  to  be  2.33  cents  (Table  XVII).  Macklin  2 
found  this  expense  to  be  somewhat  higher  for  Kansas  (Table 
XVIII). 

TABLE  XVII 
WHO  GETS  THE  MONEY? 


Cents 

Per  cent 

Farmer   .  . 

22      22. 

6?    7 

Hauling.  .  .  . 

I      ZO 

42 

Creamery.  .  . 

2    ?2 

6  7 

Railway 

80 

2    2 

Storage.  . 

18 

O    <\ 

Shrinkage.  .  . 

23 

O    7 

Receiver  1 
Jobber      r 

I    7<\ 

r    o 

Broker    j 
Packaging  

I    OO 

2    O 

Retailer  

?.  .4? 

9-9 

34-55 

100.  0 

These  expenses  from  the  Iowa  report  appear  to  be  rather  low 
and  it  is  likely  that  some  of  the  expenses,  perhaps  such  as  in- 


1  Bulletin  270,  Wisconsin,  1916. 


2  Bulletin  217,  Kansas,  1917. 


200 


MANAGEMENT   OF   DAIRY   PLANTS 


§ 

£ 


3    £ 

£    fe 

I  i 


e 
i 


I, 


COST   OF   MANUFACTURING   BUTTER  2OI 

surance,  interest,  and  depreciation,  were,  at  least  in  part,  left 
out  of  consideration.  In  accordance  with  estimate  No.  i, 
page  3,  of  this  book,  the  cost  per  pound  of  butter  for  manufac- 
turing in  a  creamery  manufacturing  67,200  pounds  annually 
amounts  to  4.70  cents.  For  creamery  No.  2,  manufacturing 
134,000  pounds  of  butter  annually,  the  cost  of  manufacturing 
is  reduced  to  3.08  cents  per  pound  of  butter.  It  is  difficult 
even  in  the  best  managed  creameries  to  reduce  the  average 
cost  of  manufacturing  to  less  than  from  2  to  3  cents  per  pound 
if  all  expenses  are  accounted  for.  During  the  summer  season 
the  cost  of  manufacturing  will  naturally  be  comparatively  low, 
but  in  the  small  creamery  it  will  increase  nearly  in  proportion 
to  the  decrease  in  output.  The  larger  plants  are  able  to  manu- 
facture butter  at  a  low  cost  during  the  summer  season,  but 
it  is  equally  true  that  some  of  the  large  plants  are  operating 
under  so  heavy  expense  during  the  winter  season  that  in  reality 
their  advantage  in  the  cost  of  manufacturing  becomes  insignif- 
icant. Such  conditions,  however,  when  they  occur  are  due  to 
lack  of  management. 

The  cost  of  manufacturing  could  often  be  reduced  by  re- 
ducing the  general  expenses,  as  are  enumerated  above. 

Labor  usually  constitutes  the  big  item  of  expense.  It  is  not 
possible  to  make  a  statement  as  to  what  the  cost  of  labor  per 
pound  of  butter  should  be.  This  cost  depends  primarily  on  the 
size  of  the  creamery.  It  is  possible  to  increase  the  cost  of  labor 
per  pound  of  butter  materially  and  at  the  same  time  greatly 
increase  the  general  profits  to  the  creamery.  It  never  pays  to 
engage  a  cheap  man  as  butter  maker,  for  although  by  so  doing 
the  cost  per  pound  of  butter  manufactured  will  be  reduced,  the 
general  profits  will  usually  be  reduced  because  the  man  who  is 
willing  to  work  cheaply  is  a  man  without  experience  or  without 
even  ordinary  ability.  Labor  and  how  the  cost  thereof  may  be 
reduced  are  discussed  in  Chapter  VII. 

For  the  purpose  of  guarding  against  unnecessary  expenses 
it  is  advisable  that  a  daily  cost  record  be  kept  (Form  XVII). 
Such  a  record  contains  information  that  is  most  essential  to 
the  manager. 


ll 


Churnetf 


H 


CHAPTER  XVII 

PROFITS  OBTAINED  FROM  THE  MANUFACTURE  OF 
ICE  CREAM 

THE  general  factors  influencing  the  profits  obtained  from  the 
manufacture  of  ice  cream  may  be  enumerated  under  the  heads 
of  A,  cost  of  material;  B,  yield  of  ice  cream  obtained;  and  C, 
general  expenses. 

A.  COST  OF  MATERIAL 

That  the  cost  of  material  used  for  the  manufacture  of  ice 
cream  is  a  factor  of  importance  is  illustrated  by  the  following 
formulas.  Each  formula  represents  the  amount  of  material 
required  for  manufacturing  ten  gallons  of  ice  cream.  For  the 
one  formula  a  high-grade  material  is  used,  while  for  the  other 
a  material  of  lower  quality  is  used. 

FORMULA  No.  i  l 

42  Ibs.  20  per  cent  cream  at  50  cents  per  Ib.  butter  fat $4.20 

8  Ibs.  sugar  at  6  cents 48 

4  oz.  vanilla  at  $8.00  per  gallon 25 

4  oz.  gelatin  at  45  cents  per  pound n 

Total  cost  of  material $5.04 

Cost  of  material  for  one  gallon  ice  cream 504 

FORMULA  No.  2 

44  Ibs.  16  per  cent  process  cream  at  40  cents  per  Ib.  butter  fat $2.81 

8  Ibs.  sugar  at  6  cents 48 

4  oz.  vanilla  at  $3.00  per  gal 09 

4  oz.  gelatin  at  15  cents  per  pound 04 

i  oz.  gum  tragacanth ; .06 

Total  cost  of  material $3.48 

Cost  of  material  for  one  gallon  ice  cream 348 

1  Figures  are  based  on  prewar  conditions. 
203 


204  MANAGEMENT   OF   DAIRY   PLANTS 

It  will  be  noted  from  the  foregoing  formulas  that  the  dif- 
ference in  the  cost  of  the  cream  made  a  difference  of  15.6  cents 
per  gallon  of  the  finished  product.  The  difference  in  cost  of 
vanilla  made  a  difference  of  1.6  cents  per  gallon  of  ice  cream. 
The  cost  of  gelatin  does  not  affect  the  final  cost  to  a  great  ex- 
tent, as  it  is  comparatively  cheap,  and  if  the  cheaper  grades  are 
used  it  will  require  greater  quantities  in  order  to  accomplish 
the  same  result. 

I.  Cream.  —  The  cream  is  the  most  important  ingredient 
of  ice  cream.  By  reducing  the  richness  of  cream  from  20  to 
19  per  cent  in  formula  No.  i,  the  cost  of  the  ice  cream  was 
reduced  2.1  cents  per  gallon.  The  reduction  would  in  reality 
be  a  trifle  less,  as  a  decrease  in  fat  content  of  the  original  cream 
would  slightly  decrease  the  yield  of  ice  cream.  It  is  evident  that 
the  uniformity  of  the  fat  content  of  the  original  cream  is  essen- 
tial not  merely  for  the  purpose  of  producing  an  ice  cream  of 
uniform  quality,  but  also  for  the  purpose  of  controlling  the  cost 
of  the  finished  product. 

The  richness  of  the  cream  should  be  determined  by  testing  it 
for  butter  fat  and  if  not  of  proper  richness  it  should  be  standard- 
ized. It  is  often  taken  for  granted  that  cream  skimmed  with 
the  same  centrifugal  separator  is  of  uniform  richness  and  that 
testing  and  standardizing  of  such  cream  is  unnecessary.  This 
does  not  coincide  with  modern  teaching,  as  it  has  been  found 
that  cream  produced  by  the  same  separator  may  readily  vary  as 
much  as  5  per  cent  in  fat  content  fron  one  skimming  to  another, 
even  though  the  cream  screw  may  be  left  unchanged. 

i.  Standardization  of  Cream.  —  By  standardization  of  cream 
the  manufacturer  is  not  merely  controlling  the  cost  of  cream 
required,  but  is  furthermore  in  a  position  to  manufacture  a 
uniform  product  which  is  essential  to  the  successful  marketing 
thereof. 

A.  Reducing  the  Richness  of  Cream  with  Skim  Milk.  —  In 
that  instance  the  cream  to  be  standardized  contains  the  entire 
amount  of  fat  which  the  standardized  cream  will  contain. 
Therefore  the  number  of  pounds  of  original  cream  multiplied  by 
the  number  representing  the  test  of  same  divided  by  the  num- 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  2O5 

her  representing  the  desired  richness  gives  the  amount  of 
standardized  cream  produced. 

Example  i: 

Reduce  the  richness  of  80  pounds  of  30  per  cent  cream  to 
20  per  cent  by  addition  of  skim  milk. 

80  X  30/20  =120  pounds  of  20  per  cent  cream. 
120  —  80  =  40  pounds  of  skim  milk  required. 

When  a  given  amount  of  standardized  cream  is  desired,  using 
skim  milk  for  reducing,  then  the  pounds  of  original  cream  used 
are  equal  to  the  number  representing  pounds  of  standardized 
cream  multiplied  by  the  number  representing  the  richness  of 
the  standardized  cream,  dividing  the  product  by  the  figure 
representing  the  richness  of  the  original  cream. 

Example  2: 

Prepare  300  pounds  of  20  per  cent  cream  from  30  per  cent 
cream  and  skim  milk. 

300  X  20/30  =  200  pounds  of  30  per  cent  cream  required. 

300  —  200  =  TOO  pounds  of  skim  milk  required. 

B.  Reducing  the  Richness  of  Cream  with  Whole  Milk.  —  The 
following  method  by  Pearson  is  easy  and  accurate  for  deter- 
mining the  quantity  of  milk  or  thin  cream  that  must  be  added  to 
a  rich  cream  to  produce  a  cream  of  required  richness  or  fat 
content: 

Draw  a  square  and  write  at  the  two  left-hand  corners  the 
percentages  of  fat  in  the  fluids  to  be  mixed,  and  in  the  center 
place  the  required  percentage.  At  the  upper  right-hand  cor- 
ner put  the  number  which  represents  the  difference  between 
the  two  numbers  standing  in  line  with  it,  i.  e.,  the  number  in 
the  center  and  the  one  at  the  lower  left-hand  corner.  At  the 
lower  right-hand  corner  put  the  number  that  represents  the 
difference  between  the  two  numbers  in  line  with  it.  Now  let 
the  upper  right-hand  number  refer  to  the  upper  left  and  the 
lower  right-hand  to  the  lower  left,  then  the  two  right-hand 
numbers  show  the  relative  quantities  of  the  fluids  represented 
at  the  left-hand  corners  that  must  be  combined  to  give  a  fluid 
of  the  desired  standard  which  is  represented  in  the  center. 


206 


MANAGEMENT   OF  DAIRY  PLANTS 


Example  3: 

Prepare  260  pounds  of  cream  containing  25  per  cent  fat  from 
4  per  cent  milk  and  30  per  cent  cream. 

30  21  parts  of  30  per  cent 

cream 


5  parts  of  4  per  cent 
milk 


21 


260  X  —  =  210  pounds  of  30  per  cent  cream  required. 
26 

260  X  —  =  50  pounds  of  4  per  cent  milk  required. 
26 

Example  4: 

Prepare  25  per  cent  cream  from  231  pounds  of  35  per  cent 
cream  and  4  per  cent  milk. 

35  21  parts  of  35  per  cent 

cream 


io  parts  of  4  per  cent 
milk 

231  X  —  =  341  pounds  of  25  per  cent  cream. 
21 

341  —  231  =  no  pounds  of  4  per  cent  milk  required  or  341  X 
-  =  no  pounds  of  4  per  cent  milk  required. 


10 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  2&f 

The  following  method  by  the  author  *  is  also  easy  and  quick 
for  the  operator  to  use: 

Let  Ci  represent  amount  of  original  cream. 
C2  represent  amount  of  standardized  cream. 
M  represent  amount  of  milk. 
t  represent  test  of  milk. 
ti  represent  test  of  original  cream. 
t2  represent  test  of  standardized  cream. 
If  the  value  of  Ci  is  given,  but  the  value  of  C2  is  unknown, 
then 

C2  X  ta  =  Ci  X  ti  +  (C2  -Ci)  t  or 

r    -  r  v  tl~"t 
<-2  —  <-i  /\  - 

t2  —  t 

This  may  be  expressed  as  follows:  "When  a  definite  amount 
of  original  cream  is  to  be  standardized  with  milk  of  known  rich- 
ness then  the  amount  of  standardized  cream  is  equal  to  the 
figure  representing  pounds  of  original  cream  used  multiplied  by 
figure  representing  the  difference  between  test  of  original  cream 
and  test  of  milk,  this  product  divided  by  figure  representing 
the  difference  between  test  of  standardized  cream  and  test  of 
milk." 

Example  5: 

Prepare  20  per  cent  cream  from  100  pounds  of  30  per  cent 
cream  and  4  per  cent  milk. 

C2  =  100  X  —     -  =  162  1/2  pounds  of  20  per  cent  cream 
20  —  4 

162  1/2  —  100  =62  1/2  pounds  of  4  per  cent  milk  to  be  used 
for  standardizing. 

If  the  value  of  C2  is  given  the  value  of  Ci  unknown,  then 
from  the  same  equation  we  have  the  following: 


ti  —  t 

This  may  be  expressed  as  follows:  "When  a  definite  amount 
of  standardized  cream  is  desired  then  the  amount  of  original 

1  Creamery  Journal,  June  i,  191  r. 


208  MANAGEMENT   OF   DAIRY   PLANTS 

cream  required  is  equal  to  figure  representing  the  pounds  of 
standardized  cream  multiplied  by  figure  representing  the  differ- 
ence between  test  of  standardized  and  test  of  milk,  this  product 
to  be  divided  by  figure  representing  the  difference  between  test 
of  original  cream  and  test  of  milk. 

Example  6: 

Prepare  100  pounds  of  20  per  cent  cream  from  30  per  cent 
cream  and  4  per  cent  milk. 

Ci  =  100  X  -       -  =  6 1  7/13  pounds  of  30  per  cent  cream. 
3°  — 4 

loo  — 61  7/13  =  38  6/13  pounds  of  4  per  cent  milk. 

To  illustrate  the  similarity  between  the  two  methods  suppose 
Example  6  had  been  figured  by  'the  method  of  Pearson;  the 
formula  would  have  been  as  follows: 

d-iooX  2°~4 


(20  —  4)+  (30  —  20) 
Example  5  by  that  method  would  be  solved  as  follows: 


20  —  4 

For  the  purpose  of  facilitating  the  work  of  the  ice  cream  de- 
partment standardization  tables  may  be  used  to  advantage. 

The  same  rules  and  formulas  as  apply  for  standardization 
of  cream  may  also  be  used  for  standardization  of  milk. 

2.  Homogenization  of  Cream.  —  By  homogenization  cream 
is  subjected  to  energetic  mechanical  treatment.  The  Gaulin 
system  is  the  oldest  and  possibly  the  best  known  in  the  United 
States. 

The  cream  enters  the  machine  at  a  high  temperature.  It 
is  forced  through  fine  metal  capillary  tubes  and  against  a  conical 
agate-  valve  disk  at  a  pressure  of  from  2,000  pounds  to  3,000 
pounds  per  square  inch.  The  fat  globules  in  cream  thus  treated 
are  broken  up  to  such  an  extent  that  they  are  removed  with 
difficulty  with  a  cream  separator  if  the  homogenization  is 
properly  done. 

For  butter  making  this  treatment  is  of  no  advantage  but 


PROFITS   FROM   MANUFACTURE   OF   ICE    CREAM  2OQ 

of  disadvantage,  for  the  reason  that  homogenized  cream  cannot 
be  churned. 

A.  Its  Value  in  Ice  Cream  Making.  —  In  ice  cream  making 
this  treatment  of  the  cream  has  the  advantages  that  the  cream 
acquires  a  firmer  and  smoother  body  so  that  a  20  per  cent 
homogenized  cream  will  produce  an  ice  cream  of  a  similar 
consistency  as  ice  cream  made  from  a  richer  cream.    Ice  cream 
made  from  homogenized  cream  possesses  better  keeping  quali- 
ties and  will  yield  more  services  per  gallon  than  that  made 
from  cream  which  has  not  been  so  treated.    It  is  furthermore 
entirely  free  from  butter  particles  which  are  so  readily  formed 
in  untreated  cream  during  the  process  of  freezing. 

Since  the  introduction  of  the  homogenizer  it  has  been  learned 
that  by  heating  skim  milk  to  a  high  temperature  and  then  add- 
ing melted  butter  in  definite  quantities  and  homogenizing,  it  is 
possible  to  produce  a  cream  which  in  appearance  is  identical 
with  normal  cream.  This  system  has  the  disadvantages:  First, 
that  it  discourages  the  production  of  sweet  cream,  which 
means  much  to  the  dairy  states,  as  it  is  well  known  that  the 
ice  cream  manufacturer  is  recognized  to  be  the  principal  edu- 
cator for  quality;  second,  it  discriminates  against  the  smaller 
ice  cream  manufacturer,  as  he  cannot  afford  to  install  a  homog- 
enizer and  is  therefore  compelled  to  buy  more  expensive  cream; 
and  third,  if  butter  from  sour  cream  is  used  then  it  becomes 
nothing  less  than  a  renovating  process. 

The  production  of  artificial  cream  in  places  where  dairying 
is  not  well  enough  developed  should  not  be  discouraged,  for  if 
the  cream  has  to  be  shipped  a  great  distance  it  is  more  economi- 
cal and  fully  as  sanitary  to  produce  the  cream  from  butter  made 
from  sweet  cream,  from  a  practically  sterilized  milk  powder,  and 
from  sterilized  water. 

B.  Cost  of  Homogenization.  —  The  machine  after  it  has 
been  started  requires  but  little  attention.     One  man's  time 
while  the  homogenizer  is  operated  is  sufficient.    In  addition  to 
that  the  main  cost  is  the  cost  of  power  and  the  interest  on  the 
investment.    A  homogenizer  of  sixty  gallons'  capacity  per  hour 
requires  3  horse  power,     By  installing  a  larger  homogenizer 


210  MANAGEMENT   OF   DAIRY   PLANTS 

some  reduction  will  be  made  in  the  cost  of  power,  as  a  machine 
of  a  capacity  of  200  gallons  per  hour  only  requires  6  horse  power. 

3.  Storing  of  Cream.  —  As  the  demand  for  ice  cream  is  gov- 
erned largely  by  weather  conditions  and  local  events,  the  ice 
cream  manufacturer  sustains  annually  much  loss  on  cream,  for 
if  he  has  too  big  a  supply  on  hand  under  ordinary  conditions  he 
is  usually  compelled  to  sell  it  to  the  butter  manufacturer  at  a 
loss.  At  other  times,  when  the  demand  for  a  short  time  is  above 
normal,  it  may  even  be  impossible  to  secure  a  sufficient  supply. 
The  storing  of  cream  for  from  one  week  to  ten  days  will  to  a 
great  extent  eliminate  such  difficulties. 

A.  Preparation  of  Cream  for  Storage.  —  The  cream  should  be 
cared  for  immediately  upon  arrival  at  the  factory.  If  left  on 
the  creamery  floor  without  attention  it  will  soon  become  unfit 
for  ice  cream  making.  Cream  used  for  the  manufacture  of 
ice  cream  should  not  contain  above  .2  per  cent  of  acid.  It 
should  be  free  from  undesirable  flavors.  If  the  cream  is  re- 
ceived during  a  period  of  several  hours  it  should  be  placed  in  a 
tank  of  ice  water  as  soon  as  received,  or  better,  in  a  cooling  vat. 
When  the  cream  has  all  been  collected  it  is  standardized  to  the 
desired  richness  and  then  pasteurize^. 

The  method  of  pasteurization  most  satisfactory  for  cream 
for  ice  cream  making  is  that  of  heating  the  cream  to  a  temper- 
ature of  from  140°  to  145°  F.  and  holding  it  at  that  temperature 
from  twenty  to  twenty-five  minutes.  From  the  pasteurizer  the 
cream  is  cooled  to  within  a  few  degrees  of  freezing.  It  is  then 
put  away  in  cans  into  a  brine  tank  or  a  cold-storage  room 
which  is  held  at  a  temperature  of  a  few  degress  below  freezing. 
The  cream  is  stirred  frequently  until  it  has  reached  the  freezing 
point,  when  it  is  left  until  enough  of  the  cream  has  frozen  to 
form  ice  on  the  side  of  the  can  to  a  thickness  of  from  a  half  to 
one  inch.  The  cans  may  now  be  packed  in  crushed  ice  or  placed 
in  a  cold-storage  room  at  32°  F.  and  kept  in  that  condition  until 
used.  All  cream  used  for  ice  cream  making  should  be  treated 
in  this  manner  and  held  for  not  less  than  twenty-four  hours  at 
32°  F.  before  used.  By  so  doing  the  body  is  improved  and  the 
yield  increased. 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  2ll 

The  cans  containing  the  cream  held  for  storage  should  be 
sealed.  This  is  done  very  satisfactorily  by  placing  a  parchment 
paper  over  the  top  of  the  can,  then  placing  a  tight-fitting  cover 
on  the  can.  The  parchment  paper  will  fit  in  between  the  cover 
and  the  collar  of  the  can  and  act  as  a  seal. 

B.  Length  of  Time  for  Storage.  — The  length  of  time  that 
cream  may  be  safely  stored  is  not  satisfactorily  known.  The 
cream  may  retain  its  fresh  flavor  for  from  three  to  four  weeks  if 
the  cans  are  properly  sterilized  and  sealed  and  if  the  cream  is 
kept  at  a  temperature  of  32°  F.  It  has  been  found,  however, 
that  when  the  cream  has  been  held  over  ten  days  or  two  weeks 
the  bacteria  are  apt  to  increase  at  a  high  rate.1  It  is  not  known 
what  effect  this  increase  will  have  on  the  wholesomeness  of 
the  product. 

II.  Flavoring  Materials.  — 

1.  Sugar.  —  Sugar  is  one  of  the  important  ingredients  in  ice 
cream.    The  most  common  sugar  used  is  fine  granulated  cane 
sugar.    Beet  sugar  is  used  by  several  manufacturers  and  is  sold 
for  a  fraction  of  a  cent  less  per  pound.    There  is  a  difference  in 
opinion  as  to  the  relative  value  of  the  two;  however,  it  is  most 
generally  considered  that  the  difference  is  insignificant. 

2.  Flavoring    Extracts.  —  Extracts    become    of    much    im- 
portance for  the  reason  that  vanilla  ice  cream  constitutes  from 
75  to  90  per  cent  of  the  ice  cream  manufactured  and  for  vanilla 
ice  cream  an  extract  is  the  only  practical  flavoring  to  use.    Of 
other  extracts  used  by  the  ice  cream  factories,  might  be  men- 
tioned lemon,  orange,  almond,  pistachio,  peppermint,  rose,  etc. 
It  is  most  satisfactory  to  'use  berries,  fruits,  and  nuts  direct  as 
flavoring,  and  extracts  should  not  be  used  unless  in  case  of  neces- 
sity. 

A.  Vanilla  Extract.  —  Vanilla  extract  is  prepared  from  the 
fully  matured,  unripe  cured  fruit  of  the  perennial  climbing  vine, 
vanilla  planifolia.  Several  varieties  of  vanilla  beans  are  on  the 
market.  The  difference  in  the  delicacy  of  flavor  determines  the 
difference  in  value  between  the  various  kinds  of  beans.  In 
market  value  the  Mexican  bean  ranks  highest  and  sells  at  from 

1  Bulletin  134,  Iowa  Experiment  Station,  1912. 


212  MANAGEMENT   OF   DAIRY  PLANTS 

$8  to  $30  per  pound.  The  Bourbon  bean  ranks  second,  selling 
at  from  $5  to  $14  per  pound,  the  South  American  bean  sells  at 
from  $4  to  $6  per  pound.  The  cheapest  of  the  various  varieties 
is  the  Tahiti  bean,  which  sells  at  from  $1.75  to  $2.25  per  pound.1 

The  flavoring  material  contained  in  the  vanilla  bean  is 
slightly  soluble  in  water,  but  readily  soluble  in  alcohol.  For 
that  reason  a  weak  alcohol  is  used  for  extracting  the  flavoring 
material  from  the  beans. 

The  United  States  standard  defines  vanilla  extract  as  being 
the  flavoring  extract  prepared  from  the  vanilla  bean,  with  or 
without  sugar  or  glycerin  and  contains  in  100  c.  c.  the  soluble 
matter  from  not  less  than  10  grams  of  the  vanilla  bean. 

According  to  this  standard  the  United  States  official  method 
for  manufacturing  vanilla  extract  is  as  follows: 

"Mix  650  c.  c.  of  alcohol  with  350  c.  c.  of  water.  Macerate 
100  grams  of  vanilla  beans,  which  have  been  previously  cut 
into  small  pieces  and  bruised  in  a  mortar,  in  500  c.  c.  of  the 
mixture  for  twelve  hours;  then  drain  off  the  liquid  and  set  aside. 
Transfer  the  vanilla  to  a  mortar,  beat  it  with  200  grams  of 
sugar  into  a  uniform  powder,  then  pack  it  in  a  percolator  and 
pour  upon  it  the  reserved  liquid.  When  this  has  disappeared 
from  the  surface,  continue  percolation  by  gradually  pouring  on 
sufficient  menstruum  to  make  1,000  c.  c.  of  extract." 

Material  cost  of  preparing  one  gallon  of  vanilla  in  accordance 
with  the  United  States  official  method  is  as  follows,  figuring 
that  the  extract  is  manufactured  from  a  Mexican  vanilla  bean 
at  $10  per  pound: 

650  c.  c.  alcohol  at  70  cents  per  liter $0.46 

200  grams  sugar  at  6  cents  per  pound 0.03 

100  grams  vanilla  bean 2.21 


Material  cost  of  1,000  c.  c.  vanilla  extract $2.70 

i  gallon  =  3,785  c.  c. 

Material  cost  of  i  gallon  =  $10.22. 

1  Flavoring  extracts  by  R.  A.  Kuever. 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  213 

Suppose  Tahiti  beans  at  $2  per  pound  are  substituted  for  the 
Mexican  vanilla  bean,  the  material  cost  of  a  gallon  of  vanilla 
extract  will  then  be  reduced  to  $3.53. 

An  extract  resembling  vanilla  extract  and  often  sold  for 
vanilla  extract  is  manufactured  synthetically  and  its  cost  of 
production  is  much  less  than  the  cheapest  true  vanilla  extract 
manufactured.  Therefore,  in  purchasing  vanilla  extract, 
the  writing  on  the  label  of  the  bottle  should  be  carefully  read 
and  at  times  a  sample  of  the  goods  might  be  sent  to  the  State 
Experiment  Station  for  analysis. 

The  extract  made  from  the  Tahiti  bean  is  of  a  lighter  color 
than  that  manufactured  from  other  beans  and  is  therefore 
readily  distinguished  unless  artificially  colored. 

Although  it  may  appear  to  be  profitable  for  the  ice  cream 
manufacturer  to  manufacture  his  own  vanilla  extract,  it  has 
been  found  by  many  who  have  attempted  to  do  so  in  a  small 
way  that  they  have  not  been  successful  in  producing  an  extract 
equal  to  the  commercial  product. 

B.  Lemon  Extract,  —  Lemon  extract,  in  accordance  with 
the  United  States  standard,  is  the  flavoring  extract  prepared 
from  oil  of  lemon  or  from  lemon  peel,  or  both,  and  contains  not 
less  than  5  per  cent  by  volume  of  oil  of  lemon. 

Oil  of  lemon  is  the  volatile  oil  obtained  by  expression  or 
alcoholic  solution  from  the  fresh  peel  of  the  lemon,  has  an  opti- 
cal rotation  1  of  not  less  than  +60°  in  a  100  mm.  tube  and  con- 
tains not  less  than  4  per  cent  by  weight  of  citral. 

The  direction  for  preparing  a  tincture  of  lemon  peel  is  as 
follows: 

500  grams  lemon  peel  from  the  fresh  fruit  in  thin  shavings 
and  cut  in  narrow  shreds. 

Alcohol  of  sufficient  quantity  to  make  1,000  c.  c. 

"Macerate  the  lemon  peel  in  a  stoppered,  wide-mouthed 
container  in  a  moderately  warm  place  with  i  ,000  c.  c.  of  alcohol 
during  forty-eight  hours  with  frequent  agitation;  then  filter 
through  purified  cotton,  and  when  the  liquor  has  drained  off 

'  25°  C. 


214  MANAGEMENT   OF   DAIRY   PLANTS 

completely  gradually  pour  on  enough  alcohol  to  make  1,000 
c.  c.  of  tincture  and  filter. " 

As  noted  above,  a  lemon  extract  may  readily  be  prepared  by 
any  manufacturer.  The  most  expensive  material  used  for  the 
preparation  of  a  lemon  extract  is  the  alcohol,  therefore  the 
manufacturers  of  extract  often  prepare  cheap  terpeneless  ex- 
tracts. It  requires  at  least  80  per  cent  by  volume  of  alcohol 
for  a  lemon  extract  containing  5  per  cent  of  lemon  oil.  Deodo- 
rized or  purified  alcohol  is  to  be  preferred. 

Lemon  is  not  a  popular  flavor  for  ice  cream,  but  is  used  for 
nearly  all  water  ices  and  lactos;  however,  for  the  manufacture 
of  these,  we  depend  mainly  on  the  juices  of  the  fruit. 

Orange  extract  is  prepared  in  a  similar  manner  as  lemon 
extract. 

C.  Detection  of  Artificial  Extracts.  —  The  ice  cream  maker 
is  seldom  capable  of  making  chemical  analyses,  but  there  are  a 
few  simple  tests  by  which  the  maker  may  obtain  a  fair  idea  as  to 
the  purity  of  some  of  the  more  common  extracts. 

If  normal  acetate  of  lead  solution  is  added  to  a  sample  of 
vanilla  extract  a  heavy  precipitate  is  formed  if  the  extract  is 
pure.  If  the  extract  remains  clear,  or  if  only  a  mere  cloudiness 
is  formed,  it  is  conclusive  evidence  that  the  extract  is  artificial. 

Lemon  and  orange  extracts  are  readily  tested  by  placing  a 
small  sample  in  a  test  tube;  if  by  adding  an  equal  amount  of 
water  a  heavy  precipitate  is  formed,  then  it  is  an  indication 
that  the  extract  is  of  good  quality.  The  heavier  the  precipitate 
the  better  the  extract. 

The  following  method  by  Mitchell  is  for  determination  of  oil 
in  a  lemon  or  orange  extract:  "Transfer  by  a  pipette  20  c.  c.  of 
the  extract  to  a  Babcock  milk  bottle,  add  i  c.  c.  of  dilute  hy- 
drochloric acid  (i  :  i);  add  25  to  28  c.  c.  of  water  previously 
warmed  to  60°  C. ;  mix,  and  stand  in  water  at  60°  for  five  min- 
utes; centrifuge  for  five  minutes;  fill  with  warm  water  to  bring 
the  oil  into  the  graduated  neck  of  the  flask,  and  repeat  the  whirl- 
ing for  two  minutes;  stand  in  water  at  60°  for  a  few  minutes,  and 
read  the  per  cent  of  oil  by  volume.  Where  the  oil  of  lemon  is 
present  in  amounts  over  2  per  cent,  add  to  the  percentage  of  oil 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  21$ 

found  0.4  per  cent  to  correct  for  the  oil  retained  in  solution. 
Where  less  than  2  per  cent  and  more  than  i  per  cent  is  present, 
add  0.3  per  cent  for  correction." 

3.  Fruit  and  Berries.  —  Most  fruits  and  berries  possess  dis- 
tinctive flavors  which  are  desirable  in  the  manufacture  of  ice 
creams  and  ices.  It  is  very  seldom  possible  to  prepare  from 
such  fruits  or  berries  an  extract  sufficiently  concentrated  to  be 
of  much  value  when  used  in  small  quantities.  For  that  reason 
most  fruit  extracts  obtained  on  the  market  are  manufactured 
from  artificial  fruit  essences  made  up  of  compound  ethers  so  as 
to  imitate  the  various  fruit  flavors. 

The  ice  cream  manufacturer  who  is  giving  due  consideration 
to  quality  does  not  use  imitation  extracts  but  prefers  to  use  the 
pure  fruit.  This  may  be  used  either  in  the  form  of  fruit  juice  or 
as  crushed  fruit,  but  as  fruits  and  berries  are  seasonal  it  be- 
comes necessary  to  preserve  such  fruits  and  berries  for  which  a 
permanent  demand  has  been  created.  It  has  been  found  l  that 
ordinary  methods  of  sterilizing  fruit  juices  by  heat  may  be 
successfully  applied  to  but  a  limited  number  of  the  special 
fruits,  such  as  the  black  raspberry,  blackberry,  black  currant, 
sour  cherry,  and  peach.  In  the  case  of  juices  of  the  straw- 
berry, red  raspberry,  red  currant,  pineapple,  and  the  citrus 
fruits  as  well  as  apple  cider,  sterilization  by  heat  causes  loss 
in  flavor,  and  where  kept  after  heat  sterilization  the  juices  of 
these  fruits  tend  to  lose  in  color  or  flavor,  or  both. 

A.  Preparation  of  Strawberries  for  Storage.  —  Strawberries 
which  are  of  great  importance  as  flavoring  for  ice  cream  may  be 
sterilized  without  injury  to  color  but  with  marked  injury  to  the 
fresh  fruit  flavor.  A  cooked  strawberry  flavor  develops.  Straw- 
berries may  be  prepared  for  storing  as  follows: 

A  perfectly  fresh  berry  of  a  fine  and  pronounced  flavor 
should  be  selected.  The  berries  should  be  rinsed  with  cold 
water  and  mashed  through  a  fine  hair  sieve.  The  juice,  which 
may  be  collected  in  a  milk  can  or  an  ice  cream  can,  is  weighed 
and  an  equal  amount  of  sugar  by  weight  is  added.  The  mix- 
ture of  berry  juice  and  sugar  is  stirred  thoroughly  at  frequent 

1  Bui.  241,  U.  S.  Dep.  of  Agriculture,  1915. 


2l6  MANAGEMENT   OF  DAIRY  PLANTS 

intervals  while  it  is  left  at  ordinary  room  temperature  from 
twenty-four  to  forty-eight  hours.  The  object  is  to  have  the 
sugar  thoroughly  dissolved.  When  the  sugar  has  thus  been 
dissolved  the  fruit  should  be  cooled,  which  is  most  readily  done 
by  packing  the  can  or  cans  containing  the  fruit  in  crushed  ice. 
The  fruit  should  be  held  thus  until  it  has  reached  a  temperature 
of  about  35°  F.  It  is  then  ready  to  be  packed  for  storage.  It 
may  be  put  into  earthen  containers  or  it  may  be  packed  in 
larger  containers  such  as  barrels.  It  should  not  be  packed  in 
larger  containers  than  can  be  emptied  within  two  or  three 
weeks'  time  unless  good  cold  storage  facilities  are  available. 

If  barrels  are  used  these  should  be  thoroughly  cleaned  and 
sterilized  and  then  paraffined  on  the  inside.  When  the  barrel 
is  full  of  fruit  it  is  headed  up  and  sealed  with  paraffin  wax. 
It  should  be  held  at  a  temperature  of  50°  F.  or  lower,  if  possi- 
ble. 

The  importance  of  watching  the  fruit  closely  while  it  is  being 
stored  should  not  be  overlooked.  If  there  is  any  which  shows 
the  slightest  indication  of  fermentation  it  should  be  used  imme- 
diately or  sterilized. 

The  cost  of  the  fruit  prepared  in  accordance  with  the  fore- 
going direction  is  as  follows,  in  accordance  with  results  obtained 
by  the  author:  * 

i  crate  of  strawberries  producing  16  Ibs.  juice,  cost $2.00 

16  Ibs.  sugar  at  6  cents 96 

Labor .25 

Total  cost  for  32  Ibs.  sirup $3.21 

A  fruit  sirup  thus  prepared  has  a  specific  gravity  of  1.32.  The 
weight  of  one  gallon  of  sirup  =  8.35  X  1.32  =  n  pounds. 

32  -T-  ii  =  2.91  gallons  prepared  from  one  crate  of  berries. 
Cost  per  gallon  =  3.21-7-2.91  =  $1.10. 

The  yield  of  fruit  juice  obtained  in  the  above  experiment  was 
80  per  cent.  Gore  2  obtained  yields  from  strawberries  ranging 
from  63  to  88.06  per  cent. 

1  From  experiments  conducted  igi4. 

2  Bulletin  241,  U.  S.  Department  of  Agriculture,  10.15. 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  217 

Berries  and  fruits  of  various  kinds  may  be  prepared  by  a 
method  similar  to  that  outlined  for  the  preparation  of  straw- 
berries. 

B.  Preparation  of  Cherries  for  Storage.  —  Cherry  sirup  has 
been  prepared  most  successfully  by  the  author  by  heating  the 
cherries  to  about  185°  F.  before  crushing.  After  crushing,  the 
juice  is  kept  at  185°  F.  for  thirty  minutes,  sugar  is  then 
added  in  equal  proportions,  and  the  sirup  is  allowed  to  cool. 
The  following  gives  the  cost  of  cherry  sirup  in  accordance  with 
results  obtained  by  the  author: 

i  bushel  of  cherries  produces  29  Ibs.  juice,  cost $3.00 

29  Ibs.  sugar  at  6  cents 1.74 

Labor 50 


Total  cost  for  58  Ibs.  sirup $5.24 

Specific  gravity  of  sirup  1.3. 
58  Ibs.  sirup  =  5.375  gallons. 
Cost  per  gallon  of  cherry  sirup,  97.5  cents. 

4.  Chocolate.  —  Chocolate  and  similar  flavoring  material 
which  needs  to  be  prepared  before  it  is  added  to  ice  cream 
should  always  be  kept  on  hand  in  the  form  of  a  sirup.  This 
sirup  may  be  prepared  when  there  is  less  regular  work  in  the 
factory  and  no  time  is  lost  when  the  ice  cream  maker  is  busy. 

A  chocolate  sirip  may  be  prepared  from  a  simple  sirup  and 
chocolate  or  cocoa.  The  principal  difference  between  chocolate 
and  cocoa  is  that  the  chocolate  contains  all  of  the  oil  from  the 
bean.  The  cocoa  bean  contains  close  to  50  per  cent  of  oil;  this 
latter  is  of  no  value  as  a  flavor-producing  material  and  it  is  not 
particularly  desirable  mixed  with  cream,  which  already  contains 
a  high  per  cent  of  fat.  Cocoa  is  the  same  as  chocolate,  except 
that  part  of  the  oil  has  been  removed  from  the  cocoa  bean,  and 
cocoa  therefore  contains  less  fat  and  more  flavoring  material. 
If  one  and  a  half  pounds  of  chocolate  are  used  for  ten  gallons 
of  ice  cream,  the  same  result  will  be  secured  using  about  one 
pound  of  cocoa. 


2l8  MANAGEMENT   OF   DAIRY  PLANTS 

A.  Chocolate    Sirup.  —  Chocolate    sirup    is    prepared    by 
dissolving  cocoa  or  chocolate  in  simple  sirup.    The  mixture  is 
brought  to  a  boil  and  when  the  chocolate  or  cocoa  is  dissolved 
the  sirup  is  cooled  and  transferred  to  sterilized  jugs  or  jars. 
Cocoa  may  be  added  to  the  sirup  in  the  proportion  of  one  pound 
of  cocoa  to  three  or  four  pounds  of  simple  sirup. 

B.  Simple    Sirup.  —  Simple    sirup    is   prepared   by   adding 
twelve  pounds  of  sugar  to  eight  pounds  of  water.     This  is 
boiled  until  it  has  a  specific  gravity  of  about  1.32  at  60°  F. 
Such  a  sirup  contains  about  66  per  cent  of  sugar.    The  weight 
of  one  gallon  of  simple  sirup  thus  prepared  is  eleven  pounds. 
The  cost  of  such  a  sirup,  figuring  sugar  at  six  cents  per  pound,  is 
about  forty-four  cents  per  gallon. 

III.  Fillers.  —  Fillers  are  comparatively  cheap,  and  from 
the  standpoint  of  cost  the  manager  should  not  be  so  interested 
as  from  the  standpoint  of  quality.  It  was  found  -1  that  by  using 
four  ounces  of  a  certain  kind  of  gelatin  for  ten  gallons  of  ice 
cream  the  bacteria  count  increased  565,000  germs  per  c.  c.  due 
to  the  organisms  contained  in  the  gelatin  while  a  gelatin  of 
higher  quality  was  practically  sterile. 

B.  YIELD  OF  ICE  CREAM 

The  amount  of  ice  cream  obtained  in  excess  of  amount  of 
mix  used  is  called  the  overrun.  The  overrun  may  be  figured 
from  volume  or  from  weight. 

I.  Overrun  Figured  from  Volume.  —  The  overrun  figured 
from  volume  is  determined  by  the  following  formula: 

(Gallons  ice  cream  produced — gallons  mix  used)  100 
gallons  of  mix  used 

cent  overrun. 

Example: 

100  pounds  of  mix,  of  a  specific  gravity  of  1.07,  produces 
20  gallons  of  ice  cream.  Figure  overrun. 

1  Bulletin  134,  Iowa  Experiment  Station,  1912. 


PROFITS    FROM   MANUFACTURE   OF   ICE   CREAM  2 19 

100 


8.35  X  1.07 


=  1 1. 1 9  gallons  mix. 


(20—11.19)  X  ioo 

—  =  78.73  per  cent  overrun. 
11.19 

The  weight  per  gallon  of  the  finished  ice  cream  is  in  this 
instance  five  pounds.  The  greater  the  overrun  the  lighter  the 
finished  product  will  be.  It  is  possible  to  obtain  a  considerable 
higher  overrun  than  that  indicated  in  this  problem,  but  if  the 
overrun  becomes  too  great  the  body  of  the  ice  cream  becomes 
too  light  and  fluffy.  The  weight  of  the  finished  ice  cream  should 
not  be  less  than  five  pounds  per  gallon. 

II.  Overrun  Figured  from  Weight.  —  The  overrun  may  also 
be    figured    from    weight  in   accordance   with    the    following 
formula: 

(Weight  per  gal,  of  mix— weight  per  gal,  of  ice  cream)  ioo  _ 

weight  per  gal.  of  ice  cream 
per  cent  overrun 

Applying  this  to  problem  above  we  have 

(8.i>z  X  1.07  —  <)  ioo 

-  =  78.69  per  cent  overrun. 

The  ice  cream  maker  should  check  his  work  from  time  to 
time  during  the  day's  run.  This  is  most  readily  done  by  weigh- 
ing a  container  of  ice  cream,  thus  determining  the  weight  per 
gallon. 

III.  Figuring  Overrun  from  Amount  of  Mix  or  Amount 
of  Cream  Used.  —  In  the  above  formulas  the  overrun  has  been 
calculated  from  amount  of  mix.    This  is  very  satisfactory  when 
the  same  formula  is  being  used  at  all  times.     Some  manufac- 
turers prefer  to  figure  the  overrun  from  amount  of  cream  used 
which  may  be  considered   to  be  equally  satisfactory.     For 
plain  ice  cream  a  hundred  per  cent  overrun  on  amount  of  cream 
used  may  usually  be  considered  equal  to  about  eighty  per  cent 
overrun  when  figuring  from  amount  of  mix  used;  this,  however, 
depends  on  formula  used. 


220  MANAGEMENT   OF   DAIRY  PLANTS 

IV.  Factors  Influencing  Yield  of  Ice  Cream  Obtained.  - 

The  principal  factors  influencing  the  yield  of  ice  cream  obtained 
are:  First,  condition  and  treatment  of  cream  used;  second,  tem- 
perature of  ice  cream  when  drawn  from  freezer;  third,  tempera- 
ture of  circulating  brine;  fourth,  size  of  batch  frozen;  fifth, 
speed  of  agitator.1 

1.  Condition  and  Treatment  of  Cream  Used.  — The  value  of 
aging  the  cream  has  been  formerly  discussed.    Rich  cream  pro- 
duces a  higher  yield  than  thinner  cream.     Cream  of  a  high 
temperature  is  likely  to  churn  during  the  freezing  process  and 
the  yield  is,  as  a  result   thereof,   decreased.     Homogenized 
cream  produces  less  yield  than  does  cream  which  has  not  been 
so  treated  unless  frozen  longer  than  untreated  cream.2 

2.  Temperature  of  Ice  Cream  When  Drawn  from  Freezer.  — 
The  temperature  at  which  the  ice  cream  returns  the  greatest 
yield  is  usually  from  27°  F.  to  28°  F.    This,  however,  may  vary 
slightly  due  to  the  condition  of  the  cream  used. 

3.  Temperature  of  Circulating  Brine.  —  A  brine  of  low  tem- 
perature causes  the  ice  cream  to  freeze  before  a  sufficient 
amount  of  air  has  been  incorporated.    If  the  brine  is  too  warm 
the  freezing  takes  too  long  and  it  may  result  in  partly  churning 
the  cream.    A  brine  of  a  temperature  from  8°  F.  to  14°  F.  is 
most  desirable;  the  lower  temperature  is  most  satisfactory  for  a 
cream  of  lower  viscosity.    A  cream  of  higher  viscosity,  such  as 
homogenized  cream,  should  be  frozen  with  a  brine  of  the  higher 
temperature  so  as  to  allow  longer  time  for  the  incorporation 
of  air. 

4.  Size  of  Batch  Frozen.  —  The  larger  the  batch  up  to  a  cer- 
tain limit  the  greater  the  yield  will  be.     The  smaller  batch 
freezes  too  soon  before  a  sufficient  amount  of  air  has  been 
incorporated. 

5.  Speed  of  Agitator.  —  The  freezer  should  be  operated  very 
slowly  until  it  reaches  the  point  of  freezing  which  varies  from 
28°  F.  to  29°  F.3    It  should  be  the  object  to  reach  that  point 

1  Bulletin  180,  Iowa  Experiment  Station,  1918. 

2  Bulletin  180,  Iowa  Experiment  Station,  1918. 

3  Bulletin  155,  by  Washburn,  Vermont  Exp.  Station,  1910. 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  221 

before  the  fat  globules  begin  to  coalesce,  for  if  not  the  cream  is 
less  suitable  for  whipping.  The  speed  may  then  be  increased  to 
advantage. 

V.  Losses  Which  Influence  the  General  Yield.  —  Losses 
of  various  kinds  are  usually  found  to  be  more  frequent  in  the  ice 
cream  factory  than  in  the  creamery.  It  is  only  by  the  closest 
attention  of  the  manager  to  the  details  of  the  work  in  the  fac- 
tory that  such  losses  will  be  reduced  to  the  minimum.  The 
most  significant  of  such  losses  are  due:  First,  to  inaccurate  ice 
cream  molds  and  containers;  second,  to  molding  of  hard  ice 
cream,  and  third,  to  retailing  of  ice  cream. 

1.  Ice  Cream  Molds  and  Containers.  — The  ice  cream  brick 
molds  and  containers  should  be  tested  as  to  accuracy  of  size 
before  they  are  placed  in  service.    This  is  most  conveniently 
done  by  weighing  the  amount  of  water  which  they  hold.     A 
5-gallon  container  if  of  proper  size  will  hold  exactly  8.35  X  5 
=  41.75  pounds  of  water. 

2.  Molding    of  Ice   Cream.  —  The   molding    of    ice    cream 
should  be  done  directly  from  the  freezer  or  before  the  cream  has 
been  thoroughly  hardened;  if  not,  the  loss  is  increased.    The 
loss  sustained  due  to  molding  of  hard  ice  cream  may  readily 
reduce  the  quantity  of  ice  cream  from  10  to  20  per  cent. 

3.  Retailing  Ice  Cream.  —  The  retailing  of  ice  cream  will 
always  result  in  a  quantity  loss.    This  may  be  due  partly  to 
giving  the  retail  customers  too  big  measure  or  to  the  trans- 
ferring of  hard  ice  cream  from  one  container  to  another.     If 
ice  cream  is  sold  at  retail  it  is  most  satisfactory  to  mold  it  in  the 
form  of  a  brick  of  a  quart  size  direct  from  the  freezer. 

C.  GENERAL  EXPENSES  IN  MANUFACTURING 
ICE  CREAM 

The  general  expenses  in  the  manufacture  of  ice  cream  are 
much  similar  to  the  general  expenses  in  the  creamery  and  will 
be  discussed  here  in  so  far  as  they  differ. 

The  cost  of  material  used  for  ten  gallons  of  vanilla  ice  cream 
has  previously  been  figured  at  $5.04.  This  does  not  include 


222 


MANAGEMENT  OF  DAIRY  PLANTS 


such  other  expenses  as  labor,  salt,  ice,  power,  interest,  insurance, 
etc. 

FORM  XVIH 

ICE  CREAM  MANUFACTURING  REPORT  SHOWING  COST  OF  MATERIAL  USED  PER  GALLON  OF 
ICE  CREAM  MANUFACTURED 


KIND  OF 
ICE  CREAM 

Lbs. 
cream 

Lbs. 

sugar 

Ozs. 

vanilla 

Lbs. 

gelatin 

Am't 
mfd. 

Over- 
run 

Total 
cost 

Cost 
per 
gal. 

TOTAL 

I.  Cost  of  Labor.  —  Some  small  creameries  are  so  situated 
that  they  need  a  helper  during  the  summer  season,  but  on  ac- 
count of  lack  of  business  there  is  less  than  a  day's  work  for  each 
of  the  men.  Such  a  creamery  may  during  the  summer  season 
manufacture  ice  cream  for  its  town  at  practically  no  extra  ex- 
pense for  labor.  The  amount  of  labor  which  is  due  to  be  paid 
for  the  ice  cream  department  should,  however,  be  figured  as 
paid  from  there  and  the  labor  transferred  to  the  ice  cream 
department  should  be  credited  to  the  butter  department. 
Some  smaller  ice  cream  plants  find  that  labor  is  a  big  item. 
Some  figure  the  cost  of  labor  for  manufacturing  as  high  as  10 
cents  per  gallon  of  ice  cream  manufactured. 

i.  The  Wholesale  Plant. — The  amount  and  cost  of  labor 
required  in  a  factory  manufacturing  600  gallons  of  ice  cream 
daily  may  be  estimated  as  follows: 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM  223 

i  manager $    250.00 

1  ice  cream  maker,  $100  per  month 150.00 

2  helpers  at  $70  per  month 180.00 

i  can  washer 90.00 

i  man  for  handling  sweet  cream . .  90.00 

i  bookkeeper 100.00 

i  order  clerk 90.00 

1  shipping  clerk 90.00 

2  drivers  for  wholesale  at  $90  per  month 180.00 


Total  cost  per  month 1,220.00 

Total  cost  per  day 40.66 

Cost  per  gallon  manufactured 00.0678 

It  is  not  entirely  fair  to  charge  all  of  the  above  expenses 
against  manufacturing,  as  part  of  the  manager's  and  book- 
keeper's salaries  and  the  entire  salary  of  the  order  clerk  and 
drivers  should  be  charged  against  the  selling  expenses.  In  a 
factory  of  the  above  size  the  manager  will  take  entire  charge  of 
selling.  Therefore  the  cost  of  $0.0678  per  gallon  should  be  under- 
stood to  be  the  cost  of  labor  for  manufacturing  and  selling, 
except  the  traveling  expenses  for  the  solicitor  which  are  not 
included. 

2.  The  Retail  Plant.  —  The  cost  of  manufacturing  and  selling 
at  retail  is  greatly  increased  due  to  extra  cost  of  labor,  cost  of 
delivery  and  bookkeeping,  and  shrinkage  of  ice  cream.  There- 
fore in  making  the  retail  prices  such  factors  should  be  consid- 
ered. 

II.  Cost  of  Power.  —  The  cost  of  power  may  be  determined 
on  the  basis  that  a  ic-gallon  batch  freezer  will  require  about  2 
horse  power.    An  ice  crusher  will  require  from  3  to  5  horse 
power. 

III.  Cost  of  Ice  and  Salt.  —  The  cost  of  ice  and  salt  for 
freezing,  for  hardening,  repacking  in  the  hardening  tank,  and 
repacking  for  shipment  amounted  to  7  1/2  cents  ger  gallon  for 
the  entire  year's  business  in  a  factory  where  an  average  of  500 
gallons  were  manufactured  daily  during  the  summer  season. 
The  ice  was  figured  at  a  cost  of  $3  per  ton  and  the  salt  at  $7  per 


224  MANAGEMENT  OF  DAIRY  PLANTS 

ton.  At  this  particular  ice  cream  factory  the  hardening  tanks 
were  kept  in  a  large  open  room  without  refrigeration.  The 
ice  cream  was  repacked  twice  daily  in  the  hardening  tanks. 
This  expense  might  be  reduced  materially  by  keeping  the  hard- 
ening tanks  in  a  refrigerator  room.  In  one  ice  cream  factory 
where  that  system  of  hardening  was  introduced  it  was  found 
that  the  ice  cream  kept  in  most  excellent  condition  by  repack- 
ing only  once  daily.  Some  are  using  brine  instead  of  ice  and 
salt  for  the  hardening  tanks.  This  will  tend  to  reduce  the  cost 
somewhat.  The  dry  hardening  rooms  are  the  most  sanitary 
and  for  larger  plants  the  most  economical,  but  for  a  very  small 
plant  that  system  would  prove  to  be  rather  expensive.  It  is 
economy  to  use  brine  direct  from  the  cold  storage  system  for 
freezing  the  ice  cream  wherever  such  brine  is  available. 

IV.  Cost  Due  to  Loss  of  Ice  Cream  Containers  and  Tubs. 
The  loss  of  ice  cream  containers  and  tubs  may  be  a  big  item 
unless  systematic  records  are  kept  of  outgoing  containers. 
The  ice  cream  manufacturer  should  select  some  individual 
color  or  some  method  of  painting  his  tubs  so  that  they  will  not 
resemble  those  of  his  competitors.  By  this  individuality  the 
packers  will  be  generally  known  and  will  usually  be  returned  to 
the  proper  factory.  The  tubs  should  furthermore  bear  the  firm 
name  and  address.  They  should  be  numbered  so  that  it  may 
be  possible  to  keep  record  of  the  individual  containers.  It  is 
convenient  to  use  letters  for  designating  the  size  of  containers. 
A  might  thus  be  used  for  lo-gallon  packers,  B  for  5-gallon 
packers,  C  for  3-gallon  packers,  etc.  In  accordance  with  that 
system  the  lo-gallon  packers  would  be  numbered  Ai,  A2,  A3, 
etc.;  5-gallon  packers  would  be  numbered  Bi,  B2,  B3,  etc. 

When  a  shipment  of  ice  cream  is  sent  out  a  tag  should  be 
attached  to  the  tub  bearing  the  name  and  address  of  the  cus- 
tomer (Form  XIX). 

Part  of  this  tag  bearing  the  name  and  address  of  the  customer, 
the  number  of  packer,  and  the  date  shipped  is  torn  off  from  the 
original  tag  and  filed  on  a  board,  properly  numbered.  When- 
ever the  containers  are  returned  the  original  tags  are  com- 
pared with  corresponding  stubs  and  destroyed.  Some  manu- 


PROFITS   FROM   MANUFACTURE   OF   ICE   CREAM 


225 


facturers  have  a  special  ledger  for  keeping  records  of  outgoing 
and  incoming  containers,  but  that  method  requires  more  labor 
and  is  less  satisfactory.  If  proper  records  are  kept  of  the  con- 
tainers, then  it  may  be  safely  estimated  that  the  containers  and 
tubs,  if  of  good  quality,  will  serve  for  three  years  or  more. 


FORM  XIX 
ICE  CREAM  SHIPPING  TAG 


DAIRY  DEPARTMENT  I.  S.  C. 


*••* 


Please  Leave  This  Tag  On  Packer 


CHAPTER  XVIII 
MARKETING  OF  DAIRY  PRODUCTS 

A.  SALESMANSHIP 

THE  selling  of  goods  may  be  defined  as  an  exchange  of  values; 
the  act  of  selling  is  known  as  a  business  transaction.  In  order 
that  a  business  transaction  may  lead  to  a  permanent  business 
relationship  the  transaction  should  be  of  mutual  benefit  to  the 
parties  concerned.  The  one  who  buys  the  goods  must  feel 
satisfied  that  he  obtained  as  good  value  for  his  money  as  could 
be  obtained  anywhere.  The  one  who  sells  the  goods  should 
likewise  be  satisfied  with  the  transaction.  If  either  of  the  two 
parties  attempts  to  take  advantage  of  the  other  the  result  will  be 
that  business  relationship  between  the  two  will  sooner  or  later 
be  discontinued. 

I.  The  Salesman.  —  The  one  who  sells  goods  is  known  as  the 
salesman.  The  art  of  selling  goods  becomes  more  important  as 
competition  becomes  stronger  and  as  business  becomes  more 
centralized.  The  salesman  of  to-day  is  therefore  a  man  who 
must  meet  many  requirements. 

i.  He  Should  be  Honest,  be  of  Good  Moral  Character,  and  of  a 
Strong  but  Pleasing  Personality.  —  He  should  cultivate  taste 
for  good  company,  for  a  man's  character  is  often  judged  by  that 
of  his  associates,  and  the  modern  business  man  is  won  most 
readily  by  that  salesman  who  is  of  a  strong  character  and  per- 
sonality. After  he  has  won  the  confidence  of  the  buyer  a  sales- 
man is  often  tempted  to  sell  a  bigger  order  of  goods  than  would 
be  profitable  for  the  purchaser  to  buy,  but  the  salesman  should 
look  after  the  interest  of  his  customers  the  same  as  he  is  looking 
after  the  interest  of  the  firm  by  which  he  is  employed.  When- 
ever necessary  he  will  make  suggestions  in  reference  to  the  size 
of  orders  which  can  be  handled  to  best  advantage  by  the  pur- 

226 


MARKETING   OF   DAIRY   PRODUCTS  227 

chaser.  He  should  present  the  goods  just  as  they  are,  not 
making  any  statements  without  authority  from  his  house  or 
statements  which  his  firm  is  unable  to  back  up. 

2.  He   Should   Cultivate   Acquaintance   with   His   Customers 
and  Always  be  Glad  to  See  Them.  —  A  salesman  who  is  afraid  of 
meeting  his  customers  after  he  has  called  on  them  a  few  times 
does  not  understand  the  secret  of  gaining  their  friendship. 
Such  friendship  can  be  gained  only  by  salesmen  who  are  in 
sympathy  with,  and  have  respect  for,  the  people  with  whom 
they  are  dealing.    The  salesman  should  therefore  be  ready  to 
observe  the  good  qualities  of  his  customer  but  slow  in  observing 
the  qualities  less  desirable.    A  salesman's  opportunity  to  be  of 
help  to  his  customers  should  be  considered  as  a  privilege,  as  it 
will  result  in  mutual  friendship,  which  is  the  strongest  asset  a 
salesman  can  possess. 

3.  He  Should  Know  the  Goods  He  Sells  and  Have  Confidence 
in  the  House  He  Represents.  —  The  man  who  sells  a  dairy  prod- 
uct should  know  how  such  a  product  is  manufactured,  and  if 
he  is  without  technical  knowledge  then  he  should  first  work  for 
some  time  in  a  dairy  establishment.    Even  though  he  may  have 
a  fair  technical  knowledge  he  should  spend  a  few  days  in  the 
factory  which  manufactures  the  goods  he  is  to  sell.     It  is  just 
as  essential  for  a  salesman  to  be  in  possession  of  such  knowledge 
as  it  is  for  the  attorney  who  is  to  conduct  a  case  based  on  tech- 
nical principles. 

It  is  not  merely  the  general  principles  of  manufacturing, 
common  to  all  establishments  making  the  same  line  of  goods, 
that  should  be  studied,  but  especially  such  phases  of  the  work 
in  which  the  factory  he  represents  excels  the  others.  Particu- 
lar attention  should  be  given  to  sanitation,  quality  of  raw 
material  used,  scientific  principles  involved  in  manufacturing, 
and  quality  and  appearance  of  the  finished  product. 

Experience  thus  obtained  enables  the  representative  to  pre- 
sent properly  the  merits  of  the  goods  he  sells.  It  also  gives  him 
enthusiasm  and  confidence  in  his  firm.  It  is  a  difficult  task  for 
any  one  to  sell  an  unknown  product  even  at  an  average  price; 
it  is  comparatively  easy  to  sell  a  product  at  an  advance  in  price 


228  MANAGEMENT   OF  DAIRY  PLANTS 

if  the  salesman  is  fully  aware  of  the  superiority  of  that  product. 
The  fact  that  the  factory  is  so  equipped  with  machinery  and 
supplied  with  raw  material  that  it  can  meet  the  demand  at  all 
times  of  the  year  is  also  a  big  factor  in  developing  confidence  on 
the  part  of  the  one  who  sells  the  goods. 

4.  He  Should  Familiarize  Himself  with  the  Quality  of  Goods 
Sold  by  His  Competitors  and  with  Their  Methods  of  Selling.  — 
This  is  entirely  for  the  purpose  of  self-education  and  not  for 
the  direct  purpose  of  taking  undue  advantage  of  such  knowl- 
edge.   A  salesman  should  hold  his  competitors  in  high  esteem. 
He  should  never  speak  of  them  when  he  sells  goods,  for  if  he 
does  it  is  an  indication  that  he  is  afraid  of  them  and  it  makes 
him  weaker  in  the  eyes  of  the  prospective  customer. 

5.  He  Should  Have  Self -Confidence.  —  The  one  who  lacks 
self-confidence  will  never  be  able  to  talk  convincingly.     Self- 
confidence  should  not  be  confused  with  self-conceit,  for  that  is  a 
very  undesirable  quality  to  possess. 

6.  He  Should  be  a  Judge  of  Human  Nature.  —  The  people  he 
is  to  deal  with  are  of  different  temperaments.     They  have 
different  ideas,  they  do  business  in  a  different  manner.    It  is 
therefore  essential  that  the  salesman  first  study  the  individual- 
ity of  the  person  he  expects  to  approach.    The  nature  and  the 
volume  of  his  business  have  much  to  do  in  shaping  the  business 
man.    The  man  who  conducts  a  large  retail  grocery  business  in 
a  large  city  is  a  busier  man  and  requires  different  approach 
than  the  one  conducting  a  grocery  business  in  a  small  town. 

Before  approaching  a  person  the  salesman  should  have  made 
a  fair  analysis  of  him  and  of  his  business.  The  approach  is  a 
very  important  part  of  the  salesman's  work.  His  manner  of 
approach  creates  in  the  prospective  buyer  a  like  or  a  dislike, 
and  unless  he  is  able  to  make  a  favorable  impression  his  chances 
for  interesting  the  prospect  are  very  poor.  In  order  to  appeal 
favorably  he  should  be  polite;  he  should  not  inconvenience  the 
one  he  expects  to  do  business  with,  but  if  he  finds  that  he  is 
busy  it  would  possibly  be  advisable  to  call  later.  A  salesman  is 
at  a  disadvantage  when  trying  to  interest  a  person  who  for  the 
time  being  has  urgent  business  to  attend  to.  The  salesman  in 


MARKETING   OF   DAIRY   PRODUCTS  22Q 

presenting  his  selling  talk  should  be  brief  but  convincing.  He 
should  watch  the  one  he  is  talking  to  in  order  to  observe  the 
interest  he  takes  in  his  arguments.  He  will  thus  be  able  to  de- 
termine which  points  he  needs  to  dwell  upon  and  which  he 
should  pass  lightly  over.  The  financial  interest  of  the  mer- 
chant should  always  be  kept  in  the  background  for  a  selling 
talk,  for  if  it  is  not  apparent  to  the  merchant  that  he  will  gain 
something  by  handling  that  brand  of  goods  then  it  is  unlikely 
that  he  will  become  interested.  The  salesman  should  know 
when  to  talk  and  when  to  let  the  other  person  talk.  Some 
buyers  prefer  to  do  most  of  the  talking  themselves  while  others 
will  quietly  listen  to  the  arguments  of  the  one  who  has  the 
goods  to  sell.  He  should  also  know  when  it  is  the  proper  time 
to  withdraw. 

7.  He  Should  be  Persistent.  —  Because  a  few  attempts  fail 
that  should  not  cause  discouragement,  but  should  call  for  re- 
newed energy.  He  should  take  advantage  of  each  failure  as 
well  as  of  each  success  by  reviewing  each  selling  talk,  singling 
out  the  mistakes  as  well  as  the  strong  points  of  the  talk.  A 
permanent  record  should  be  kept  of  such  analysis ;  a  card  file  or 
a  loose-leaf  book  is  convenient  for  such  information.  A  card  or 
a  leaf  for  each  customer  may  be  filed  with  information  about 
former  impressions,  former  conversations,  and  other  facts  of 
value.  Such  a  report  should  be  fully  studied  before  calling  on 
the  person  later.  Such  information  is  most  conveniently  filed 
geographically  and  alphabetically. 

The  salesman  should  furthermore  keep  a  permanent  daily 
record  of  the  number  of  calls  made,  number  of  selling  talks,  and 
number  of  sales  made.  This  should  be  summarized  monthly. 
The  purpose  of  this  is  for  increased  efficiency. 

II.  The  Manager  in  His  Relation  to  the  Salesman.  - 

i.  He  Should  be  Able  to  Impart  Enthusiasm  to  the  Salesman. 
-This  cannot  be  accomplished  unless  the  manager  himself 
has  enthusiasm.  Before  the  salesman  starts  to  work  the 
manager  should  take  charge  of  him  for  the  purpose  of  stirring 
his  enthusiasm  to  the  greatest  extent.  A  manager  should  never 
send  out  a  salesman  before  that  has  been  done,  for  without 


230  MANAGEMENT   OF   DAIRY   PLANTS 

enthusiasm  the  salesman  will  fail  to  present  a  forceful  selling 
talk. 

2.  He  Should  Stand  Back  of  His  Salesman.  —  The  quality 
of  goods  delivered  should  be  the  same  as  that  represented  by 
the  salesman  and  it  should  be  uniform  and  remain  so.  The 
practice  of  starting  a  new  customer,  supplying  him  with  fancy 
goods  for  a  short  time,  and  then  gradually  reducing  the  quality, 
should  be  discouraged.  A  manager  of  such  ideals  cannot  expect 
his  salesmen  to  continue  to  retain  business  or  remain  enthu- 
siastic or  to  maintain  loyalty  and  respect  for  his  firm,  all  of  which 
are  necessary  for  success. 

A  creamery  is  at  times  during  the  winter  season  short  of 
butter  for  its  regular  customers.  If  it  is  marketing  its  butter 
under  a  certain  brand  which  has  been  advertised  in  a  way  to 
lead  the  consumer  or  dealer  to  think  that  butter  sold  under 
that  brand  is  manufactured  by  the  creamery,  then  it  would  be 
inconsistent  and  unfair  to  the  purchaser  for  that  creamery  to 
buy  butter  from  other  factories  and  sell  it  under  its  own  brand. 
Such  a  procedure  would  make  the  purchaser  feel  that  he  had 
not  been  fairly  treated,  and  it  would  furthermore  lower  the 
value  of  a  trade-mark  which  had  perhaps  cost  much  to  adver- 
tise and  establish.  When  such  a  shortage  occurs  it  would 
be  more  satisfactory  if  the  creamery  had  a  second  established 
brand  to  be  used  more  or  less  during  the  entire  season.  This 
brand  of  butter  would  be  sold  to  merchants  with  the  dis- 
tinct understanding  that  some  of  it  or  perhaps  all  of  it  is  not 
manufactured  in  the  home  institution.  By  being  careful  about 
the  quality  of.  such  goods  and  by  properly  advertising  same, 
the  merchants  may  be  willing  to  sell  the  two  brands  during  the 
winter  season.  The  disadvantages  of  that  system  will  be  more 
than  overcome  by  the  consequent  assurance  which  the  pur- 
chaser will  have  of  the  manufacturer's  honesty. 

It  is  usually  understood  between  the  salesman  and  the  buyer 
what  size  and  kind  of  package  is  to  be  used  as  well  as  what 
time  the  shipment  is  to  be  made.  Is  is  of  greatest  importance 
that  such  agreements  are  complied  with,  inasmuch  as  dairy 
products  are  perishable  and  must  be  kept  under  refrigera- 


MARKETING    OF   DAIRY   PRODUCTS  23! 

tion.  The  dealer  always  prefers  a  package  of  such  size  as  will 
be  most  convenient  for  the  refrigerator,  and  as  he  prefers  to 
handle  fresh  goods  he  will  naturally  expect  the  goods  to  arrive 
at  definite  times. 

The  invoice,  together  with  the  bill  of  lading,  should  also  be 
sent  by  the  first  mail  leaving  after  the  shipment  has  been  made. 
Some  factories  put  the  invoice  in  an  envelope  in  the  package, 
but  it  is  safest  and  more  in  accordance  with  business  custom  to 
send  it  through  the  mail.  As  butter  fluctuates  in  value  it  is  of 
importance  that  the  dealer  receives  the  invoice  so  that  he  may 
know  the  value  of  the  goods  before  he  sells  them. 

3.  He  Should  be  in  Close  Touch  with  His  Salesman  and  His 
Customers.  —  He  should  receive  daily  reports  from  his  salesman 
and  should  write  him  daily.  He  should  always  write  encour- 
aging letters  and  not  find  fault  with  the  salesman,  for  there  is 
nothing  which  will  have  a  more  depressing  effect  on  a  salesman 
than  an  unkind  letter  from  the  home  office.  If  the  manager 
has  no  helpful  information  or  some  word  of  encouragement  to 
send  his  salesman,  then  it  is  advisable  to  save  the  time  and 
expense  of  writing.  The  manager  can  well  afford  to  keep  in 
close  touch  with  his  customers  and  it  should  be  well  worth  his 
while  to  write  to  them  at  times,  if  only  for  the  sake  of  thanking 
them  for  their  business  or  perhaps  at  times  advising  them 
when  the  salesman  will  call.  Copies  of  such  letters  should  be 
forwarded  to  the  salesman. 

B.  METHODS  OF  MARKETING 

The  method  of  marketing  should  be  determined:  First,  by 
the  nature  of  the  business.  A  market  milk  plant  will  naturally 
dispose  of  its  products  locally;  the  same  is  true  to  some  extent 
if  the  product  to  be  sold  is  ice  cream.  Soft  cheese  is  also  a  prod- 
uct which  is  too  perishable  to  be  shipped  great  distances, 
whereas  cheese,  properly  ripened  and  of  a  firm  body,  and  butter 
may  be  shipped  to  any  part  of  the  globe.  Second,  by  the  loca- 
tion of  the  manufacturing  establishment.  A  creamery  located 
in  the  country  lacks  transportation  facilities  for  marketing  in 


232  MANAGEMENT   OF   DAIRY   PLANTS 

smaller  quantities  and  can  usually  market  greater  quantities 
to  best  advantage.  A  creamery  located  close  to  a  railway  sta- 
tion may  be  able  to  market  its  output  in  smaller  lots  to  advan- 
tage. Third,  by  the  quantity  of  finished  products  to  be  sold  and 
the  prices  obtained  from  the  various  sources.  Some  small 
creameries  have  been  able  to  turn  their  entire  output  over  to 
large  dealers,  obtaining  as  much  therefore  as  could  be  obtained 
through  a  market  of  a  more  local  character,  and  thus  saving  the 
cost  of  establishing  a  special  market  which  would  necessitate 
the  keeping  of  additional  records  and  increase  losses  due  to  bad 
accounts.  Fourth,  by  the  business  experience  of  the  manager. 
If  he  has  no  experience  in  marketing,  in  keeping  a  systematic 
set  of  records,  or  in  collecting  accounts,  then  the  simplest 
method  of  selling  the  product  may  be  the  most  profitable. 

I.  Selling  Direct  to  the  Consumer. —  This  system  of  market- 
ing is  practiced  to  only  a  limited  extent  as  it  is  a  more  cumber- 
some method  of  establishing  a  market;  the  cost  of  selling  is 
higher  and  the  credit  risk  becomes  greater.     Moreover,  the 
manufacturer  as  a  rule  is  a  poor  retail  salesman  and  lacks  the 
connection  with  the  consumers  which  has  been  established  by  a 
regular  retail  dealer  such  as  the  grocer.    The  retail  business 
cannot  be  eliminated  entirely.    The  milk  and  cream  patrons 
deliver  the  raw  product  at  the  creamery  and  often  take  butter, 
cheese,  or  ice  cream  as  part  payment.    In  some  towns  it  may 
seem  advisable  to  cater  more  or  less  to  retail  customers,  espe- 
cially if  ice  cream  is  manufactured.    The  market  milk  plant  will 
naturally  dispose  of  the  greater  amount  of  its  output  to  the 
consumer  direct. 

II.  Marketing  Through  Retail  Establishments.  —  The  re- 
tailer is  dealing  with  the  consumer  direct.    It  is  his  business 
to  cater  to  the  wants  of  the  consumer  and  he  becomes  a  special- 
ist along  that  line.     A  retailer,  such  as  the  grocer,  handles 
numerous  lines  of  goods  and  will  usually  make  deliveries  to  the 
consumers  at  frequent  intervals.    He  will  therefore  be  able  to 
sell  at  retail  and  deliver  such  products  as  butter  and  cheese  at 
less  cost  than  can  the  factory  operator.    Ice  cream,  due  to  its 
perishability,  is  usually  marketed  from  the  factory  direct  to  the 


MARKETING   OF   DAIRY   PRODUCTS  233 

consumer  but  at  a  high  marketing  cost.  Milk  and  sweet  cream 
are  delivered  from  the  central  milk  plant  to  the  consumer  at  a 
reasonable  cost  as  they  are  delivered  to  regular  customers  at 
regular  intervals,  and  routes  for  economic  distribution  of  such 
products  are  readily  established. 

i.  Selling  to  Local  Retailers. — The  local  market  claims 
several  advantages:  First,  it  saves  in  transportation  expenses 
and  thereby  either  reduces  the  cost  to  the  consumers  or  in- 
creases the  profits  of  the  local  dealers.  Second,  it  educates  the 
people  to  demand  a  product  of  higher  quality,  as  a  perishable 
product  usually  appeals  most  favorably  to  our  sense  of  taste 
while  it  is  fresh,  and  often  creamery  butter  sold  in  a  town  will 
take  the  place  of  farm  butter  which  is  commonly  of  inferior 
quality.  Third,  the  consumers'  demand  for  better  quality  re- 
sults in  no  call  for  the  poorer  grades  of  farm  butter.  The  cream 
which  was  formerly  converted  into  farm  butter  will  be  sold 
to  the  creamery,  giving  the  farmer  a  more  satisfactory  return 
and  enabling  the  creamery  to  reduce  its  operating  expenses  per 
pound  of  butter  manufactured.  Fourth,  it  is  of  advertising 
value  to  the  creamery  to  have  its  products  sold  by  all  local 
dealers. 

If  the  creamery  is  located  in  a  city  it  is  often  most  satis- 
factory to  establish  regular  routes  and  have  a  wagon  call  and 
deliver  goods  to  retail  dealers  at  regular  intervals.  Such  a  sys- 
tem is  very  satisfactory  when  handling  butter  and  cheese.  The 
same  wagon  might  also  deliver  eggs  if  they  are  handled  by  the 
firm.  This  wagon  driver  becomes  a  salesman  for  his  firm,  and 
soliciting  of  new  trade  and  keeping  customers  pleased  are,  to  a 
certain  extent,  left  to  him.  The  manager  should  always  keep 
himself  posted  on  the  condition  of  the  business  on  each  route. 
It  is  convenient  for  him  to  have  a  map  of  the  city  in  his  office  on 
which  the  routes  are  shown.  All  dealers  may  be  indicated  on 
the  map  by  colored  pins  or  pegs.  Prospective  customers  may 
be  indicated  by  black  pegs,  active  customers  by  white-colored 
pegs,  etc.  It  may  be  advisable  also  to  have  colors  indicating 
the  nature  of  the  business  of  the  retailer  so  as  to  know  whether 
he  operates  a  grocery,  a  confectionery,  or  a  drug  store.  After 


234  MANAGEMENT   OF   DAIRY   PLANTS 

the  driver  has  completed  his  day's  work  and  returns  to  the 
creamery  he  should  report  to  the  manager  and  consult  with 
him  in  reference  to  the  business  for  the  following  day. 

The  drivers  may  be  employed  under  different  agreements. 
Some  are  employed  as  day  laborers,  but  it  is  perhaps  most  com- 
mon to  employ  them  at  a  small  monthly  salary  with  an  addi- 
tional premium  based  on  their  sales.  The  cost  of  selling  butter 
and  cheese  by  this  system  can  be  estimated  at  from  a  half  cent 
to  one  cent  per  pound,  including  both  salary  of  driver  and  cost 
of  maintaining  delivery  outfit  and  paying  depreciation  and 
interest  on  the  investment. 

Cream,  milk,  and  ice  cream  are  disposed  of  differently.  Reg- 
ular delivery  routes  are  established  for  the  delivery  of  milk  and 
cream  if  sold  at  retail.  The  driver  may  or  may  not  act  as  a 
solicitor.  Some  prefer  to  send  an  experienced  salesman  out 
from  the  office  for  the  purpose  of  soliciting  and  organizing  the 
routes  and  the  driver  is  then  merely  delivering  the  products  in 
accordance  with  his  route  list  prepared  for  him. 

2.  Selling  to  Retailers  More  Distantly  Located.  —  A  campaign 
for  such  sales  may  be  carried  on  in  two  different  ways.  First, 
the  salesman  may  solicit  all  or  part  of  the  merchants  in  a  cer- 
tain town,  and  second,  the  salesman  may  select  only  one  mer- 
chant out  of  a  number,  and  offer  him  exclusive  agency  for  the 
goods.  The  first  method  is  most  satisfactory  in  the  home  town, 
where  it  is  comparatively  easy  and  inexpensive  to  keep  in  touch 
with  the  various  dealers.  It  is  far  more  difficult  and  more 
expensive  to  keep  in  touch  with  the  dealers  in  more  distant 
towns,  and  for  that  reason  the  second  method  may  there  have 
some  advantages. 

The  principal  advantages  in  giving  a  merchant  in  an  outside 
town  exclusive  agency  are:  First,  the  buyer  takes  greater  in- 
terest in  handling  the  goods.  It  will  be  to  his  advantage  to 
handle  a  line  not  handled  by  his  competitor  if  the  goods  are  of 
high  quality.  It  will  therefore  be  easier  to  secure  a  customer 
under  such  conditions  and  he  will  remain  more  loyal  to  the 
company.  Second,  the  retailer  will  be  willing  to  advertise  the 
goods  and  the  manufacturer  thus  saves  that  expense.  It  will  be 


MARKETING   OF   DAIRY   PRODUCTS  235 

the  object  of  the  retailer  to  increase  the  sale  of  such  goods  to 
the  fullest  extent,  as  he  considers  that  he  is  advertising  his  own 
goods  when  advertising  a  line  on  which  he  holds  exclusive 
agency. 

The  disadvantage  of  this  system  is  that  one  merchant  in  a 
town  will  not  sell  as  much  as  would  be  sold  if  several  were 
handling  a  line.  If  the  sentiment  among  several  dealers  is 
favorable  to  handling  a  particular  line  of  goods  then  the  ex- 
clusive agency  plan  will  not  be  the  most  desirable.  It  is  seldom 
advisable  to  give  exclusive  agency  to  only  one  merchant  in  a 
large  city,  because  it  is  usually  possible  to  select  dealers  in 
different  parts  of  the  city  so  located  that  one  does  not  interfere 
with  the  business  of  the  other. 

III.  Marketing  Through  the  Commission  and  Wholesale 
House.  - 

1.  The  Commission  Merchant. — The  commission  merchant 
does  not  buy  goods  from  the  manufacturer,  but  receives  them  on 
consignment  and  acts  as  an  agent  for  the  manufacturer  and 
charges  a  fixed  per  cent  for  his  commission.    The  usual  rate  of 
commission  charged  for  selling  butter  is  5  per  cent  of  the  selling 
price.     The  commission  merchant  sells  to  the  retailer  direct, 
but  also  to  the  wholesaler.    The  commission  merchant  serves 
mostly  the  smaller  manufacturers,  and  this  system  of  marketing 
butter  and  cheese  has  been  rather  generally  adopted.    The  sys- 
tem has  not  proven  entirely  satisfactory,  however,  as  it  has  often 
led  to  misunderstanding  between  the  manufacturer  and  the 
dealer.    Therefore  many  dealers  are  now  buying  the  products 
outright  from  the  manufacturers  and  they  thus  become  wholesale 
buyers. 

2.  The  Broker.  —  The  broker  is  a  dealer  who,  like  the  com- 
mission merchant,   does   not  purchase   the  goods  which  he 
handles.      He  usually  represents  the  purchaser,  although  he 
often  represents  the  seller.    He  has  no  warehouse  and  as  a  rule 
maintains  only  an  office.    He  sells  mostly  in  car  lots  and  usually 
direct  to  the  jobbers  or  wholesalers. 

3.  The  Wholesale  Dealer  or  Jobber.  —  The  wholesaler  buys 
the  goods  outright  from  the  manufacturer,  commission  mer- 


236  MANAGEMENT   OF   DAIRY  PLANTS 

chant,  or  broker  and  sells  to  the  retailer.  As  already  stated,  the 
creameries  and  cheese  factories  sell  more  of  their  products  out- 
right at  wholesale  than  on  consignment. 

IV.  Marketing  Through  a  Cooperative  Selling  Agency.  — 
A  cooperative  selling  agency  may  be  organized  by  manufacturers 
for  the  purpose  of  marketing  their  own  products.  The  cost  of 
operating  the  agency  is  borne  by  all  its  members  in  proportion 
to  the  amount  of  money  obtained  for  goods  sold  through  the 
association.  Several  cooperative  selling  agencies  have  been 
organized  in  the  United  States  for  the  marketing  of  cheese,  and 
in  Europe  many  associations  have  also  been  organized  for  the 
marketing  of  butter.  This  has  not,  up  to  the  present  time,  been 
regarded  with  favor  in  the  United  States,  although  Minnesota 
reports  some  work  along  that  line. 

Theoretically  the  cooperative  selling  agency  should  be  en- 
couraged, for  it  reduces  the  number  of  middlemen.  The  first 
difficulty  that  such  organizations  experience  is  lack  of  capital  and 
for  that  reason  the  patrons  of  the  creamery  become  discouraged, 
as  their  money  is  not  forthcoming  as  soon  as  expected.  This 
delay  may  be  further  increased,  because  the  agency,  when 
starting,  has  not  as  ready  an  outlet  for  its  goods  as  the  older 
and  better  established  firms;  therefore  the  new  agency  is 
often  compelled  to  allow  butter  to  accumulate  in  the  warehouse. 
Such  conditions  will  prevail  until  it  is  able  to  establish  a  satis- 
factory outlet  for  its  goods;  for  that  reason  such  an  institution 
may  not  always,  during  the  early  part  of  its  existence,  be  in  a 
position  to  return  a  satisfactory  price  to  the  manufacturers. 

The  success  of  the  cooperative  selling  agency  depends  much 
on  the  ability  of  its  manager  and  directors.  As  the  board  of 
directors  is  elected,  it  may  be  criticized  as  lacking  in  stability 
when  conparing  it  with  an  old-established  and  well-managed 
business  concern.  If  a  capable  manager  were  secured  with  the 
understanding  that  he  would  remain  permanently  if  he  pro- 
duced results  and  if  the  board  of  directors  were  also  elected  with 
the  view  of  efficiency,  then  a  cooperative  selling  agency  should 
be  a  profitable  investment  to  all  interested. 

The  cooperative  retail  milk   distributing  association  is  an 


MARKETING   OF   DAIRY   PRODUCTS  237 

organization  of  milk  producers  organized  for  the  purpose  of 
selling  and  distributing  the  milk  produced  from  their  own 
herds.  This  may  become  a  prominent  organization  in  the  near 
future.  Under  the  old  milk  distributing  system  a  number  of 
small  dealers  deliver  milk  in  the  same  city;  frequently  several 
of  them  will  deliver  through  the  same  streets.  Much  unnecessary 
time  and  labor  would  be  saved  if  the  producers  or  small  dealers 
would  deliver  their  milk  to  a  central  plant  from  which  it  could 
be  distributed  throughout  the  city  by  one  set  of  wagons.  This 
system  would  furthermore  have  the  advantage  that  the  milk 
could  be  pasteurized  before  delivery  and  that  an  expert  in 
charge  of  such  a  plant  could  guard  against  receiving  of  milk 
which  was  not  suitable  for  human  consumption.  As  a  result 
the  market  milk  of  the  city  would  often  be  much  improved. 

The  municipal  market  milk  plant  is  a  plant  owned  and  oper- 
ated by  the  city  for  the  purpose  of  buying  the  milk  at  whole- 
sale from  the  producers  and  selling  and  distributing  same  among 
the  consumers  of  the  city.  This  plant  has,  the  same  as  the  for- 
mer, been  organized  for  the  purpose  of  eliminating  unnecessary 
expenses.  It  may  be  considered  to  be  a  valuable  institution 
for  a  city  where  the  producers  are  not  inclined  to  cooperate. 

C.  OFFICE  RECORDS 

I.  Record  of  Active,  Prospective,  and  Discontinued  Cus- 
tomers.— Records  of  out-of-town  business  are  most  readily 
kept  by  using  a  map  of  the  territory  and  a  card  file.  Differ- 
ently colored  pegs  or  pins  may  be  used  to  indicate  customers 
on  the  map,  the  same  as  outlined  for  city  sales.  The  card  files 
may  be  divided  into  active  customers,  prospective  customers, 
and  discontinued  customers.  These  may  again  be  subdivided 
geographically  according  to  counties,  towns,  or  any  other 
system  of  division.  The  geographic  divisions  may  come  in 
alphabetical  or  numerical  order,  and  finally  the  individuals 
or  firms  may  be  filed  alphabetically  under  each  geographical 
division. 

For  example,  if  the  record  of  a  certain  territory  is  filed 
according  to  towns,  then  the  main  division  of  the  file  would 


238  MANAGEMENT   OF  DAIRY   PLANTS 

be  arranged  with  town  names  coming  alphabetically.  If  Alta 
were  the  first  town  coming  in  the  order  stated,  Boone  the  sec- 
ond, Colo  the  third,  etc.,  then  the  names  of  the  customers 
(active,  prospective,  or  discontinued)  would  follow  alphabet- 
ically after  the  town  index.  The  territory  might  conveniently 
be  divided  into  sub-territories  known  by  numbers  instead  of  by 
names.  If  such  a  division  is  adopted  then  the  cards  will  follow 
in  numerical  order. 

The  card  files  are  kept  for  the  purpose  of  furnishing  brief 
information  about  correspondence,  agreements,  or  other  facts 
to  which  it  is  desirable  to  refer  without  having  to  read  through 
a  mass  of  correspondence  and  records.  A  firm  may  write  a 
circular  letter  to  prospective  customers.  A  notation  thereof  is 
made  on  a  card;  no  answer  may  be  received,  and  a  second  cir- 
cular letter  is  written,  which  is  again  noted,  etc.  A  notation  is 
also  made  if  a  reply  is  obtained.  Further  reference  may  be 
made  to  any  particular  letter  which  is  of  special  importance,  etc. 
This  card,  in  short,  contains  a  brief  summary  of  what  the  com- 
pany knows  about  a  certain  firm  or  individual. 

FORM  XX 
REPORT  CARD  ON  PROSPECTIVE  CUSTOMERS 

Name Special  information 

Address 

Kind  of  business 

Financial  Standing 

Special  report 

Circular  letter  No Date 

Circular  letter  No Date 

Reply  to  circular  letter 

No Date 

Content 


A  letter  should  be  written  or  preferably  a  personal  call 
should  be  made  immediately  after  it  has  been  discovered  that  a 
customer  has  discontinued  to  buy  goods.  The  longer  two 


MARKETING   OF    DAIRY    PRODUCTS 


239 


firms  do  business  together  the  more  intimate  their  business 
relationship  should  be,  and  it  will  therefore  become  more  diffi- 
cult to  retain  the  customer  the  longer  he  continues  in  his  busi- 
ness relationship  with  the  other  firm. 

n.  Sales  Records.  —  No  goods  should  be  delivered  for 
sale  from  the  factory  stock  room  or  refrigerator  unless  a  proper 
record  is  made  thereof.  An  order  should  be  made  out  before 
the  goods  are  delivered.  (Form  XXI.)  Such  an  order  is  usually 
written  in  the  office.  It  is  made  out  in  triplicate  and  on  three 
colors  of  paper.  The  original,  which  may  be  on  white  paper,  is 
kept  in  the  office.  The  second  sheet  may  be  of  pink  color  and  the 
third  sheet  yellow.  Both  the  second  and  third  sheets  are  turned 
over  to  the  purchaser,  who  presents  to  the  stock  clerk  the 
second  slip  as  his  order  for  the  goods.  No  goods  should  be 
delivered  on  the  third  slip,  as  this  is  merely  intended  as  a  mem- 
orandum to  be  kept  by  the  purchaser.  If  order  blanks  are 
used  they  should  be  numbered  consecutively  in  triplicate  by 
the  printer,  the  three  constituting  a  set  bearing  the  same  num- 
ber. This  is  done  so  that  possible  errors  may  more  readily  be 
found. 

FORM  XXI 

SALES  TICKET 


Sold  to 

M 

Weight 

A  rticles 

Price 

Amount 

BUTTER 

CHEESE 

MILK 

CREAM 

Received  the  Above 
N-  B-    If  cash  is  paid  at  creamery  it  must  be  written  across  the  face. 


s  g 

I1 

p* 


!-X> 


s  r 


^^v^' 


% 


240 


FORM  XXIII 


COUNTRY       DEPARTMENT 

E  MENT 


MANUFACTURERS  OF  AND  DEALERS  IN 
BUTTER,  EGGS,  CHEESE.  CREAM. 
BUTTERMILK.  ICECREAM.   MILK. 

Browne  <S£ and £>oc/f/'c  Ave. 


Bo/once  0^5  per  /osf  5fofemenf 


00 


50 


30* 


00 


20 


3O 


600 


241 


242  MANAGEMENT   OF   DAIRY   PLANTS 

While  the  purchaser  in  the  home  town  usually  receives  the 
sales  slip  as  a  memorandum,  this  is  replaced  by  the  common 
form  of  invoice  (Form  XXII),  when  goods  are  shipped  to  out- 
of-town  customers.  Bills  (Form  XXIII)  are  mailed  to  the 
customer  monthly  or  as  often  as  collections  are  made. 

Patrons  buying  butter  from  the  creamery  are  usually  fur- 
nished with  a  special  order  blank  (Form  XXIV).  This  is  made 
out  by  the  patron  in  duplicate  unless  it  is  made  out  with  a 
stub  which  is  retained  by  the  patron  as  a  memorandum.  One 
is  presented  to  the  creamery  while  the  duplicate  is  retained  by 
the  patron  as  a  memorandum. 

FORM  XXIV 

PATRONS'  SALES  TICKET 

;  No Cola,  Iowa, ig. . . 

No 

FARMERS'   CO-OPERATIVE   CREAMERY, 

Ibs.  Butter  j 

S  Please  deliver  to  bearer  and  charge  to  my  account: 

Ibs.  Cheese  I 

Ibs.  Butter 

qts.  Ice  Cream  j  Ibs.  Cheese 

qts.  Ice  Cream 

Amount,  $ :  Name  of  Patron 

Date.  .  .  I  Address.  . 


Commission  sales  may  cause  some  difficulty  to  the  account- 
ant from  the  fact  that  remittance  is  made  later  and  there  is 
usually  some  shrinkage  in  weight  from  the  time  the  butter 
leaves  the  creamery  until  it  is  sold.  The  price  is  also  likely 
to  change.  The  author  has  found  it  most  satisfactory  to  make 
a  sale  slip  for  such  shipment  the  same  as  for  butter  sold  locally, 
figuring  actual  weight  the  day  of  shipping  and  calculating 
the  value  on  the  same  basis  as  that  of  butter  sold  to  local 
merchants.  At  the  same  time  this  entry  is  made  on  the  sales 
record,  another  entry  is  made  in  a  book  ruled  similar  to 
Form  XXV, 


MARKETING   OF   DAIRY   PRODUCTS 


243 


FORM  XXV 

RECORD  OF  CONSIGNMENTS 


Lbs  of 

Received 

1 

,oss 

G 

tin 

Date 

butter 
shipped 

Value 

remittance 
for  Ibs. 
butter 

Amount 
sold  for 

Lbs. 
butter 

Amount 

Lbs. 
butter 

Amount 

Total 

Entry  is  made  on  Form  XXV  when  remittance  has  been  re- 
ceived. This  record  is  of  value  to  the  creamery,  also,  for  the 
purpose  of  checking  gain  or  loss  sustained  by  disposing  of  the 
butter  on  a  commission  basis. 

Goods  delivered  in  the  city  by  drivers  should  be  checked 
out  when  loaded  on  to  the  wagon.  The  amount  returned  is 
checked  back  and  returned  to  stock.  The  difference  between 
the  amount  taken  out  and  that  returned  should  be  accounted 
for  by  the  driver  as  sales.  The  driver,  who  acts  as  salesman 
records  the  sale  in  duplicate  on  a  sales  slip  (Form  XXI).  He 
keeps  the  original  while  the  duplicate  is  turned  over  to  the 
purchaser.  The  sales  ticket  should  be  signed  by  the  pur- 
chaser if  the  goods  are  charged.  The  word  Cash  should  be 
written  across  the  face  of  it  if  the  driver  receives  cash  for  what 


244 


MANAGEMENT  OF  DAIRY  PLANTS 


he  sells.  The  driver  upon  his  return  to  the  creamery  will  turn 
in  cash,  charge  sales  tickets,  or  goods  to  the  amount  delivered 
to  hun. 

Milk  and  cream  sold  at  retail  are  often  sold  for  tickets,  the 
driver  carrying  a  supply  of  tickets  with  him.  The  customers 
may  pay  cash  for  such  tickets  or  they  may  be  charged.  A 
record  is  kept  in  the  office  of  the  tickets  turned  over  to  the 
driver  and  he  is  held  responsible  for  them,  and  is  required  to 
return  money,  tickets,  or  charge-sales  slip  with  signature  of 
the  purchaser. 

Ice  cream  is  ordered  through  the  office  and  delivery  made 
in  accordance  with  such  order.  It  facilitates  delivery,  re- 
duces the  cost,  and  is  more  satisfactory  to  the  customers  if 
deliveries  are  made  at  definite  times  known  to  the  customers. 
A  route  sheet  (Form  XXVI)  is  furnished  each  driver  before 
starting  on  his  route  in  order  that  he  may  avoid  making  unnec- 
essary drives.  This  sheet  also  has  blank  spaces  for  signatures 
of  the  customers. 

FORM  XXVI 

ROUTE  SHEET 


Name 

Address 

Goods  purchased 

Signature  of 
purchaser 

A  .  Jones 

27  Ash  St. 

3  qt.  van. 

A.  Jones 

P.  Simons 

4lh  and  Clay 

i  qt.  ice  cream 

P.  Simons 

A.  Johanson 

203  Burnside 

i  gal.  chocolate 

A.  Johanson 

J.  Smith 


Driver. 


CHAPTER  XIX 
COST  OF  MARKETING  DAIRY  PRODUCTS 

THE  principal  factors  affecting  the  cost  of  marketing  a 
commodity  are,  according  to  Professor  L.  D.  H.  Weld,1  as 
follows: 

First,  Perishability,  overcome  in  the  case  of  some  com- 
modities by  the  possibilities  of  cold  storage. 

Second,  Shrinkage  in  transit,  storage,  preparation  for  market 
etc. 

Third,  Regularity  or  irregularity  of  production  throughout 
the  year. 

Fourth,  Possibility  of  grading  into  definite  and  widely  ac- 
cepted market  classes  or  grades. 

Fifth,  Volume  in  which  commodity  is  handled. 

Sixth,  The  relation  between  the  bulk  of  a  commodity  and  its 
intrinsic  value,  on  which  depends  the  importance  of  transporta- 
tion as  a  factor  in  the  cost  of  marketing. 

1  The  Marketing  of  Butter.  Address  before  the  Marketing  Conference,  Chicago, 
October  29,  1914. 


245 


246 


MANAGEMENT   OF   DAIRY   PLANTS 


A.  COST  OF  MARKETING  BUTTER 

Creamery  butter  is  generally  sold  on  the  markets  according 
to  quality  under  the  following  grades.  "Higher  scoring  lots, 
Extras,  Extra  Firsts,  Firsts,  and  Seconds."  A  comparison  is 
presented  in  Table  XIX  l  of  the  official  creamery-butter  grades 
of  different  wholesale  trade  organizations. 


TABLE  XIX 

COMPARISON  OF  THE  OFFICIAL  CREAMERY  BUTTER  GRADES  OF  DIFFERENT 
WHOLESALE  TRADE  ORGANIZATIONS 


Grade 

Scores  Required  for  Different  Grades  * 

Boston 

Chicago 

Elgin 

New  York  z 

Philadel- 
phia 

San  Fran- 
cisco 

Specials 

93  + 
92 

88-91 
83-87 
76-82 

91+ 
90 
87-89 
80-88 
75-89 

93+ 
3  90-92 
87-89 
80-89 
70-76 

Extras             

93+ 

93+ 
91-92 

87-91 
80-90 

75-89 

93+ 

Extra  First 

Firsts 

87-92 
80-86 

75-85 

Seconds  

Thirds  .                     .    . 

*  The  plus  sign  (-{-)  indicates  that  higher  scores  are  included. 

1  U.  S.  Dep.  of  Agriculture,  Bui.  682,  1918. 

2  At  the  discretion  of  a  "  Butter  Committee''  the  scores  required  for  various  grades 
in  the  New  York  market  are  subject  to  change. 

a  Prime  firsts. 


COST   OF   MARKETING   DAIRY   PRODUCTS  247 

The  price  of  butter  is  regulated  by  supply  and  demand. 
Butter  is  marketed  on  a  comparatively  small  margin.  Ac- 
cording to  Weld  the  Minnesota  creameries  receive  a  net  price 
of  about  two  cents  less  than  the  New  York  quotation.  The 
commission  of  5  per  cent  for  selling,  plus  the  freight  to  New 
York,  will  amount  to  between  two  and  three  cents  per  pound 
for  Minnesota  and  Iowa  creameries.  Adding  this  to  the  net 
price  obtained  by  the  creamery  gives  the  wholesale  price  of  the 
butter  in  New  York  which,  in  this  case,  means  that  the  Min- 
nesota butter  is  sold  in  New  York  at  a  fraction  of  a  cent  above 
New  York  quotations.  The  cost  of  .marketing  Kansas  butter 
is  explained  by  Macklin,1  (Table  XVII)  and  the  cost  of  mar- 
keting Wisconsin  butter  is  presented  by  Hibbard  and  Hobson 
in  Table  XVII. 

Due  to  the  fact  that  butter  is  handled  on  a  small  mar- 
gin, it  becomes  more  difficult  for  the  smaller  creameries  to 
eliminate  the  middleman  or  commission  merchant.  The  larger 
creameries  most  often  find  it  to  their  advantage  to  establish 
their  own  special  markets.  Some  have  a  special  marketing 
department,  the  butter  being  turned  over  to  that  department 
from  the  factory  at  a  definite  price.  The  marketing  department 
here  also  stands  as  the  middleman  between  the  factory  and  the 
retail  dealer,  and  all  expenses  in  connection  with  selling  are 
charged  against  that  department. 

The  retail  price  of  butter  varies  in  different  cities.  The 
charges  for  handling  a  pound  of  butter  range  from  about 
three  cents  to  seven  cents.  Five  cents  may  be  considered 
an  average.  This  is  a  reasonable  margin  for  handling  butter, 
as  it  has  to  be  held  under  refrigeration  and  delivered  to  the 
consumer. 

The  amount  paid  by  retailers  and  consumers  above  highest 
New  York  quotations  for  Extras  is  presented  by  Warber  2 
in  Table  XX.  The  same  investigator  also  found  that  branded 
butter  allows  a  greater  margin  than  butter  which  is  not  branded 
(Table  XXI).  By  this  is  not  necessarily  understood  that 

1  Bulletin  No.  216,  Kansas  Experiment  Station,  1917. 

2  U.  S.  Dep.  of  Agriculture,  Bui.  682,  1918. 


248  MANAGEMENT  OF  DAIRY  PLANTS 

branded  butter  yields  a  greater  profit  to  the  dealer,  although 
it  is  generally  considered  that  it  does,  but  there  are  additional 
expenses  connected  with  the  branding  of  butter,  such  as  special 
packages,  advertising,  etc.,  all  of  which  will  naturally  increase 
the  margin. 


COST  OF  MARKETING   DAIRY  PRODUCTS 


249 


TABLE  XX 


A  COMPARISON  OF  PRICES  AT  WHICH  DIFFERENT  GRADES  OF  BUTTER  AND 
BUTTER  SUBSTITUTES  WERE  SOLD  IN  NEW  YORK,  PHILADELPHIA, 
CHICAGO,  ST.  PAUL,  AND  MINNEAPOLIS 

[Prices  are  expressed  in  margins  of  differences  between  highest  New  York 
quotations  for  Extras  and  the  prices  actually  paid  by  retailers  and 
consumers] 


Kind  or  grade 

New  York 

Philadelphia 

Number 
of  lots 
in- 
spected 

Average  price 
paid  above  or 
below  N.  Y. 
Extras 

Average 
margin 
of 
profit 

Number 
of  lots 
in- 
spected 

Average  price 
paid  above  or 
below  N.  Y. 
Extras 

Aierage 
margin 
of 
profit 

By  re- 
tailer 

By  con- 
sumer 

By  re- 
tailer 

by  con- 
sumer 

Extras  

54 
80 
28 
23 
8 

Cents 
3-8 

2.6 
I.O 

15.4 
2.9 

Cents 

9-i 
6.6 
3-9 
21.9 
6-9 

Cents 

5-2 

4-3 
3-8 
6-5 
4.6 

35 
35 
24 
34 
9 

Cents 

5-4 
3-7 
•4 
14.2 
3-8 

Cents 

II.  2 

8.8 
2.3 
23.6 
9.3 

Cents 
6.6 
6.1 
5-0 
6.9 
7-i 

Firsts 

Seconds  

Special  brands  .... 
Unclassed  

Totals   
Process 

193 

3-6 

8.0 

4-7 

137 

7.2 

ii.  9 

6.0 

5 

12 

4-4 

—  12.6 

•5 
-6.7 

4-7 
5-8 

Oleomargarine  .... 
Extras 

4 

—ii.  5 

—6.9 

6.1 

Chicago 

Minneapolis  and  St.  Paul 

14 
159 
107 
24 

1.  1 

•  3 

—     -3 

3-0 
3-9 
1-9 
3-3 

4-5 
3-5 
3-3 

3-4 

37 
219 
70 
39 

1-3 

—     .8 
—  3-2 
—  1.7 

6-4 
4-5 
1.6 

4.4 

5-4 
4.8 

4-5 
5-4 

Firsts  

Seconds 

Unclassed     .    . 

Totals   
Process 

213 

+   -05 

3-0 

3-9 

365 

—1.14 

4.12 

4.86 

4 
56 

-  7.1 

—12.8 

2 
26 

-  6.9 
—14.4 

—  1-9 
—8.9 

5-0 
5-2 

Oleomargarine  .... 

25° 


MANAGEMENT  OF  DAIRY  PLANTS 


TABLE  XXI 

COMPARISON  OF  QUALITY  (AVERAGE  SCORE)  AND  AVERAGE  RETAIL  PRICE  OP 
BRANDED  AND  UNBRANDED  BUTTER 

[Retail  prices  expressed  in  margins  between  prices  paid  and  local  quotations 

for  Extras] 


Market 

Branded  lots 

Unbranded  lots 

Number 
of  lots 

Average 
score 

Price 
margin 

Number 
of  lots 

Average 
score 

Price 

margin 

New  York  

60 
80 
161 
230 

91.  2 
90.8 
89.6 
89.3 

Cents 
ii  .  i 
ii.  6 
6.1 
5-i8 

122 
21 

68 
37 

89.8 
90.7 
88.7 
89.7 

Cents 
8.83 
9.02 

4-7 
5-o6 

Philadelphia 

Chicago. 

St.  Paul  and  Minneapolis..  . 

The  production  of  American  butter  is  not  uniform  in  quantity 
during  the  year,  for  that  reason  it  becomes  necessary  to  store 
some  of  the  butter  that  is  produced  at  the  time  when  the 
production  is  the  largest.  About  three-quarters  of  the  hold- 
ings in  the  cold  storage  warehouses  are  stored  during  the 
months  of  June  and  July.  Bell  and  Franklin  l  (Fig.  26) 
found  that  the  cold  storage  ware  houses  contained  the  most 
butter  in  September,  after  which  it  was  reduced  until  it  con- 
tained the  least  in  May. 

It  has  become  possible  by  storing  butter  to  stabilize  the 
prices  somewhat,  moreover,  it  provides  a  supply  in  the  season 
when  the  production  is  below  the  demand.  Storing  of  butter 
will  naturally  increase  the  cost  of  marketing  as  it  involves 
special  expenses  such  as  storage  charges,  interest  on  the  invest- 
ment, insurance,  and  shrinkage. 


U.  S.  Dep.  of  Agriculture,  Bui.  709,  1918. 


COST   OF   MARKETING   DAIRY   PRODUCTS 

COLD      STORAGE      H  •  0  L  D  I  IT  G 

0  F 
CREAMERY    BUTTER 


251 


Compiled  from  the  reports  of  the  associated  warehouses* 

Based  on  the  average  holdings  of  the  years 

1907  to  1916  inclusive. 


Per 

cent 
100 

90 
SO 
70 
60 
50 

30 

20 

10 

0 


§>,->»•.•*»*•       *      ^      -!       •        * 

c     •-•      fco      04    -^      t>      o      rt     ,0     .r:      1-4 

P^J^I          <DOO<DTO(DO          P« 


m         ffl 


Per 
:ent 
100 

90 


70 
60 
50 
UO 
30 
20 
10 
0 


FIG.  26. 


MANAGEMENT  OF  DAIRY  PLANTS 


FIG.  27.  —  Public  weigh-house,  Alkmar,  Holland 


COST  OF  MARKETING   DAIRY  PRODUCTS  253 

B.  COST  OF  MARKETING  CHEESE 

It  is  thought  that  the  middleman  can  be  traced  further  back 
in  the  marketing  of  cheese  than  in  the  marketing  of  any  other 
dairy  product.  It  was  through  the  efforts  of  the  middlemen 
that  Holland  cheese  became  a  noted  food  product  in  all  parts 
of  the  world  centuries  ago.  A  Dane,  Otto  Lemwigh,  wrote  in 
1791  l  that  in  Holland  cheese  was  considered  as  one  of  their 
most  important  products  of  commerce  and  that  it  was  being 
sold  at  fabulous  prices  in  all  parts  of  the  world.  The  public 
weigh-house  used  for  weighing  the  cheese  sold  on  the  market  at 
Alkmaar,  Holland,  was  built  in  1582.  The  Alkmaar  cheese 
market  in  Holland  is  one  of  the  oldest  and  to-day  the  most 
important  cheese  market  in  that  country.  It  is  held  weekly 
each  Friday  forenoon.  The  cheese  is  brought  in  by  farmers 
and  manufacturers  and  is  spread  out  on  the  big  market  square. 
The  cheese  dealers  appear  and  the  buying  begins.  The  cheese 
is  bought  mostly  by  dealers  who  remove  it  to  their  warehouses 
from  which  it  is  shipped  to  all  parts  of  the  world. 

The  cheese  industry  in  this  country  has  been  confined  to  a 
comparatively  small  territory.  Wisconsin  claims  at  present  to 
be  manufacturing  close  to  50  per  cent  of  the  total  amount 
produced  in  the  United  States.2  In  accordance  with  Taylor, 
Schoenfeld,  and  Wehrwein  3  there  were  in  1912  eight  dairy 
boards  in  Wisconsin.  Part  of  the  Wisconsin  cheese  is  offered  for 
sale  on  the  board,  but  the  greater  portion  of  the  cheese  manufac- 
tured in  the  United  States  is  sold  on  contracts  which  are  more 
or  less  binding.  Often  the  dealers  find  it  necessary  to  keep  a 
number  of  traveling  men  in  the  field  buying  up  the  cheese  from 
the  manufacturers,  a  limited  amount  of  cheese  being  sold  on 
a  commission  basis. 

Cheese  is  generally  handled  by  three  middlemen  and  the 
transportation  company.  The  cost  of  marketing  Wisconsin 
cheese  is  as  follows:  The  dealer  charges  from  3/4  to  i  1/2  cents 

1  Professor  Bernhard  Boeggild  in  "  Maelkeribruget "  i  Fremmede  Lande,  1897. 

2  Wisconsin  Bulletin  251,  by  Hibbard  and  Hobson,  1915. 

3  Wisconsin  Bulletin  231,  1913. 


254  MANAGEMENT  OF  DAIRY  PLANTS 

per  pound,  the  wholesale  grocer  from  1/4  to  3  cents  and  the  re- 
tail grocers  from  3  to  5  cents  per  pound,  and  the  transportation 
company  obtains  from  1/4  to  2  1/2  cents  per  pound. 

Hibbard  and  Hobson  2  estimate  that  the  farmer  receives  about 
half  of  the  money  paid  by  consumers  for  cheese.  The  other  half 
of  the  consumers'  price  is  divided  among  the  middlemen,  the 
retailer  getting  about  as  much  as  the  others.  The  amount  of 
money  obtained  by  the  middlemen  should  not  be  considered 
entirely  as  profit.  The  various  operations  in  the  dealers'  ware- 
house cannot  be  carried  on  for  less  than  1/4  cent  per  pound. 
The  dealer  pays  the  freight,  paraffins  the  cheese,  which  costs 
about  1/8  cent  per  pound,  puts  it  into  the  car  to  be  shipped,  pays 
office  expenses,  insurance,  interest,  etc.,  and  storage  if  the 
cheese  has  to  be  stored,  which  usually  costs  1/8  cent  per  pound 
for  a  month  or  less  and  from  3/8  to  1/2  cent  per  pound  for  three 
months  and  up  to  six  months.  The  dealers  estimate  that  they 
should  realize  on  the  average  5/8  cent  on  all  the  cheese  they  sell 
(direct  and  stored)  to  come  out  even. 

The  expense  of  storing  more  or  less  of  the  cheese  cannot 
be  eliminated,  as  the  proportion  of  cheese  made  to  that  sold 
in  each  month  of  the  year  varies  greatly.  Figs.  28  and  29  l  illus- 
trate the  difference  between  production  and  shipments  from 
Wisconsin  during  the  year  1911.  This  situation  necessitates 
the  storing  of  at  least  part  of  the  cheese  manufactured. 

C.  COST  OF  MARKETING  ICE  CREAM 

Ice  cream  is  usually  sold  by  the  manufacturer  direct  to  the 
retailer.  The  costs  of  marketing  are  therefore  quite  readily 
determined,  as  the  middlemen  are  practically  eliminated. 

I.  Cost  of  Shipping.  —  The  distance  for  shipping  ice  cream 
is  rather  limited  because  the  product  is  perishable  and  the  cost 
of  transportation  heavy.  A  shipping  distance  of  200  miles  may 
well  be  considered  as  the  limit,  for  if  shipped  any  greater  dis- 
tance the  cost  and  the  inconvenience  of  repacking  is  involved, 
and  the  cost  of  transportation  is  increased  to  such  an  extent 

1  Bulletin  231,  Wisconsin  Experiment  Station,  1913. 


8 

g 


WIS.  CHEDDAR  CHEESE  PRODUCTION- 1911. 


nil 


I 


FIG.  28 


CHEDDAR  CHEESE  SHIPMENTS   FROM    WIS.- 1911 


E 

12 


II 


•  •  • 

I  I 

I  I 

I  I 


JAM.     PBB.     MAR.     APR.     MAY      JtlMB    JULY     AUQ.     SEPT.     OCT.      MOV.      DEC. 

FIG.  29 


256  MANAGEMENT   OF   DAIRY  PLANTS 

that  it  will  not  be  possible  to  sell  it  in  competition  with  the  ice 
cream  produced  in  factories  closer  by. 

The  following  is  the  rate  of  charges  made  by  an  express 
company  on  five  gallons  of  ice  cream  on  its  lines  through  the 
state  of  Iowa  in  1916.  To  these  figures  should  be  added  10  or 
15  cents  for  the  return  of  the  empty  container. 

Cents 

Up  to  40  miles 40 

From  41  to  50  miles 44 

From  51  to  60  miles 48 

From  6 1  to  80  miles 52 

From  81  to  90  miles 56 

From  91  to  no  miles 60 

From  in  to  1 20  miles 68 

From  121  to  140  miles 72 

From  141  to  150  miles 76 

From  151  to  200  miles 84 

From  201  to  240  miles 92 

II.  Cost  of  City  Delivery.  —  The  cost  of  city  delivery  is 
governed  largely  by  local  conditions.  Great  losses  have  been 
sustained  by  ice  cream  manufacturers  due  to  an  inferior  system 
of  city  deliveries.  Often  the  city  is  not  properly  divided  among 
the  various  drivers.  At  times  the  clerk  who  makes  out  the 
delivery  sheet  (Form  XXVI)  is  not  sufficiently  familiar  with  the 
city  so  that  he  can  make  out  the  shortest  routing.  Some  con- 
cerns have  no  definite  time  for  making  deliveries,  but  deliver 
whenever  they  have  an  order  and  thus  several  wagons  from  the 
same  factory  may  cover  the  same  territory. 

Manufacturers  engaged  in  the  retail  ice  cream  business 
usually  confine  sales  to  not  less  than  a  quart,  and  the  amount 
ordered  is  generally  delivered  by  the  manufacturer.  The  cost  of 
making  each  delivery,  including  the  return  of  the  empty  con- 
tainer, often  amounts  to  from  10  cents  to  15  cents.  This  ad- 
ditional cost  should  be  added  to  the  price  of  the  first  quart, 
as  the  following  scale  of  prices  will  illustrate:  i  quart,  60  cents; 
2  quarts,  $1.00;  3  quarts,  $1.40;  4  quarts,  $1.80. 


COST   OF   MARKETING   DAIRY   PRODUCTS  257 

III.  Cost  of  Re-icing.  —  The  system  of  re-icing  ice  cream  for 
the  retail  dealers  was  started  by  some  of  the  larger  manufac- 
turers about  1904.  The  object  was  to  systematize  thoroughly 
the  method  of  delivery.  A  wagon  loaded  with  ice  cream, 
crushed  ice,  and  salt  would  call  at  the  dealers  once  or  twice 
daily,  delivering  ice  cream  and  re-icing  cream  which  was  still 
on  hand  at  the  retailer's  store.  The  arguments  in  favor  of  this 
system  were,  first,  the  customers  would  take  a  larger  quantity  of 
ice  cream  at  a  time,  and  as  a  result  special  deliveries  would  be 
eliminated;  second,  it  would  tend  to  create  greater  satisfaction 
among  the  retail  dealers,  as  they  would  not  have  to  sustain  any 
loss  due  to  melted  ice  cream,  and  to  them  there  was  no  expense 
for  re-icing.  These  advantages  were  soon  lost  sight  of  when 
comparing  them  with  the  numerous  disadvantages  to  the 
manufacturer.  First,  the  retail  dealers  were  willing  that  the 
manufacturers  should  re-ice  their  cream,  but  they  also  de- 
manded that  they  furnish  them  with  an  ice  cream  cabinet  large 
enough  so  they  could  take  care  of  a  greater  quantity  of  ice  cream 
—  the  manufacturers  complied  with  their  request;  second, 
some  of  the  smaller  dealers  would  not  take  ice  cream  each  time 
when  the  delivery  wagon  appeared,  but  they  were  always  ready 
to  have  their  ice  cream  re-iced;  the  manufacturer  had  to  treat 
the  small  dealer  the  same  as  the  larger  dealers.  Third,  the  cost 
of  such  a  delivery  was  greatly  increased,  as  it  required  a  heavy 
team  and  two  men  to  do  the  same  amount  of  delivering  as  was 
formerly  done  by  a  light  one-horse  delivery  and  one  man. 
There  are  places  where  re-icing  may  be  done  to  advantage. 
It  has  been  the  general  experience,  however,  that  it  is  a  system 
which  is  better  not  introduced  unless  extra  charges  are  made. 
It  was  found  by  most  who  tried  it  that  such  a  business  did  not 
return  a  very  satisfactory  profit.  Some  have  perhaps  correctly 
considered  that  this  system  has  resulted  in  discrimination 
against  the  larger  purchasers.  This  is  true,  inasmuch  as  the 
manufacturer  operating  on  this  system  is  often  spending  on  the 
purchaser  of  smaller  quantities  the  profit  which  he  makes  from 
the  heavier  purchaser.  This  objection  does  not  hold  true,  how- 
ever, if  the  manufacturer  charges  extra  for  re-icing. 


258  MANAGEMENT   OF  DAIRY  PLANTS 

IV.  Overhead  Expenses.  —  The  overhead  sales  expenses 
differ  greatly  in  the  various  ice  cream  plants  and  it  is  impos- 
sible to  give  any  figure  which  would  be  fair  to  all.  The  overhead 
expenses  in  the  ice  cream  plant  should  be  carefully  looked  after 
perhaps  more  so  in  the  ice  cream  plant  than  in  any  other  dairy 
establishment. 


D.  COST  OF  MARKETING  MILK  AND  CREAM 

I.  Selling  Milk  and  Cream  at  Retail.  —  By  retail  sales  is 
understood  sales  made  directly  to  the  consumers.  The  principal 
factors  to  consider  in  determining  the  selling  value  of  milk  are: 

Purchase  cost  of  milk 

Processing  and  bottling  cost 

Distributing  cost 

Loss  due  to  shrinkage  and  waste  at  the  milk  plant 

Loss  on  surplus  milk 

Loss  on  bad  accounts 

Office  expenses 

Advertising 

Interest  on  investment 

Depreciation 

Miscellaneous  expenses 

The  cost  of  these  various  items  differ  greatly  in  the  various 
milk  plants.  Such  differences  may  be  due  to  greater  or  less 
ability  on  the  part  of  the  manager,  size  of  the  city,  size  of  the 
plant,  the  relation  of  investment  to  size  of  business,  etc. 

i.  Purchase  Cost  of  Milk.  —  By  purchase  cost  of  milk  is 
understood  the  cost  of  milk  to  the  distributor,  including  the 
transportation  cost  to  the  distributing  plant.  This  cost  may 
fluctuate  with  the  butter  market.  Some  dealers  pay  the  same 
price  during  the  entire  year,  while  it  is  perhaps  the  most  com- 
mon practice  for  the  distributor  to  have  a  yearly  contract  with 
the  producer  whereby  the  latter  obtains  a  price  for  the  year 
which  will  change  at  certain  predetermined  intervals,  so  the 
price  paid  will  to  some  extent  conform  to  the  current  butter 
market. 


COST  OF  MARKETING   DAIRY  PRODUCTS 


259 


2.  Processing  and  Bottling  Cost.  —  This  includes  cost  of  put- 
ting the  milk  in  shape  for  marketing,  such  as  clarifying,  pas- 
teurizing, cooling,  bottling,  etc.  This  cost  has  been  variously 
estimated  at  from  0.3  cent  to  i.o  cent  per  quart. 

The  labor  cost  in  filling  and  capping  the  bottles  (Table  XXII)1 
is  determined  for  107  plants  in  six  cities  and  shows  that  839 
bottles  were  capped  per  man  per  hour;  the  labor  cost  per 
hundred  bottles  being  2.4  cents;  varying  from  0.9  to  8.0  cent. 


TABLE  XXII 
LABOR  COST  FOR  FILLING  AND  CAPPING  MILK  BOTTLES 


City 

No.  plants 

Labor  costs 

Variation 

No.  bottles 
per  man 
per  hour 

Philadelphia.  . 

2C 

Cents 
i  8 

Cents 

O    O  tO    5    2. 

i  086 

New  York  

2 

2    I 

I    O  tO   2.     2 

064. 

Pittsburgh  

8 

2  .  2 

I     S   tO  6     2. 

Q27 

Baltimore  

16 

2  .  I 

1.3  to  6  .  7 

72Q 

Boston 

29 

31 

i  o  to  8  o 

72<J 

Washington          .  . 

22 

2      2 

i  8  to  s   s 

r7I 

The  value  of  most  modern  and  up-to-date  machinery  as  well 
as  the  most  efficient  operation  of  such  machinery  is  illustrated 
by  Table  XXIII.2  This  table  furthermore  emphasizes  the  fact 
that  the  efficiency  of  the  operators  as  well  as  the  proper  num- 

1  Milk  plant  letter  No.  20,  Dept.  of  Agriculture,  B.  A.  I.,  October,  1915. 
According  to  figures  in  Table  XXII  the  average  costs  in  Boston  and  Washington 

were  considerably  higher  than  in  the  other  cities,  but  in  the  latter  city  a  larger 
proportion  of  the  smaller  and  less  efficient  plants  were  taken  into  consideration 
while  in  the  former  city  26  of  the  plants  supplying  data  were  capping  by  hand, 
with  an  average  labor  cost  of  4.5  cents  per  100  bottles,  varying  from  2.1  cents  to 
8.0  cents.  Higher  wages  were  also  reported  in  that  city  than  in  some  of  the  others, 
thus  making  the  labor  cost  high  in  proportion  to  the  number  of  bottles  filled  per 
man  per  hour.  In  Philadelphia,  New  York,  and  Baltimore  a  larger  proportion  of 
the  plants  considered  were  using  automatic  machines  than  in  the  other  cities. 

2  Milk  plant  letter  No.  20,  Dep.  of  Agriculture,  B.  A.  I.  October,  1915. 


260 


MANAGEMENT  OF  DAIRY  PLANTS 


her  of  employees  engaged  at  the  work  materially  influences 
the  economic  efficiency. 

TABLE  XXIII 
TABLE  SHOWING  TIME  REQUIRED  FOR  FILLING  AND  CAPPING 


Type  of  machine 

Bottles  filled  and 
capped  per  hour 

Bottles  filled  and 
capped  per  man 
per  hour 

i.  Large,    automatic   machine,    filling 
and  capping  a  full  case  at  a  time 
2.  Rotary  type  filler  and  capper 

1,933  to  8,622 

I  3  'sO  to  2  4.A6 

966  to  2,155 
587  to  i  040 

3.  Machine  filler  and  capper  

7^0  to  7.760 

27^  to  I   ^2 

4    Hand  capping 

350  to  5  ooo 

238  to  i  066 

3.  Distributing  Cost.  —  This  includes  such  items  as  salary 
of  driver  and  collector,  upkeep  of  horses  and  wagons,  barn  ex- 
penses, and  overhead  expenses  connected  with  distribution. 
This  expense  has  been  variously  estimated  at  from  2.0  to  4.0 
cents  per  quart. 

4.  Loss  Due  to  Shrinkage  and  Waste  at  the  Milk  Plant.  —  The 
Department  of  Agriculture  l  obtained  estimates  from  41  dealers 
on  such  losses.    These  estimates  included  all  losses  in  handling 
milk  from  the  time  it  was  shipped  and  varied  from  0.5  to  4  per 
cent  and  averaged  2.15  per  cent  of  the  amount  handled  by  each 
dealer. 

Such  losses  may  be  due  to  leaky  cans,  inaccuracy  in  weight  or 
measure,  careless  handling  of  milk,  insufficient  draining  of  cans, 
leaky  apparatus,  losses  at  the  filler,  loss  from  not  removing  all 
the  milk  from  the  pasteurizer,  pipes,  pumps,  tanks,  or  other 
apparatus,  evaporation  and  mechanical  loss  during  the  process 
of  clarification,  pasteurization,  or  other  processes. 

5.  Loss  on  Surplus  Milk.  —  As  the  demand  for  sweet  milk 
and  cream  is  not  uniform  from  day  to  day,  and  as  there  is  also 

*  Milk  plant  letter  No.  9,  Department  of  Agriculture,  B.  A.  I.,  November,  1914. 


COST   OF   MARKETING   DAIRY   PRODUCTS  26 1 

slight  variation  in  the  daily  production  of  milk,  it  is  evident 
that  it  is  necessary  for  market  milk  establishments  to  handle 
a  small  amount  in  excess  of  what  can  be  disposed  of  at  retail. 
This  excess  is  usually  converted  into  other  products,  such  as 
butter,  cream  for  ice  cream  making,  or  cheese.  As  there  is 
a  good  demand  for  special  makes  of  soft  cheese,  this  has  often 
been  made  from  the  surplus  milk,  and  some  plants  have  suc- 
ceeded in  entirely  eliminating  this  particular  loss.  Prominent 
milk  dealers  of  Boston  estimate  the  loss  due  to  surplus  milk  and 
shrinkage  at  0.37  cent  per  quart.1 

6.  Loss  on  Bad  Accounts.  —  More  accounts  are  lost  when 
dealing  with  the  consumer  direct  than  when  selling  to  a  dealer. 
Customers  leave  and  neglect  to  pay  and  some  accounts  are  so 
small  that  it  will  not  pay  to  collect.    To  overcome  this  loss  in 
some  places  tickets  are  sold  on  a  cash  basis.    This  system  has 
succeeded  in  many  instances,  but  has  also  some  failures  to  its 
credit.     It  reduces  the  bad  accounts,  but  may  also  have  a 
tendency  to  reduce  the  number  of  customers. 

7.  Overhead  Expenses.  —  Overhead  expenses  such  as  office 
expenses,    insurance,    depreciation,    advertising,    etc.,    differ 
greatly  in  different  plants,  due  to  variation  in  the  cost  of  plant 
and  equipment,  office  system,  efficiency  of  organization,  etc. 

8.  Total  Cost  of  Marketing.  —  The  datum  available  on  total 
cost  is  very  limited  at  this  time  and  it  varies  greatly  in  different 
plants.     A  dairy  school  conducting  a  5oo-quart  milk  route 
twelve  miles  in  length  in  the  middle  Western  states  reports  the 
cost  at  3.51  cents  per  quart;  deliveries  were  reported  not  to  be 
made  more  than  three  houses  from  the  main  route.    The  milk 
was  not  pasteurized. 

Milk  dealers  of  Boston  report  the  cost  of  marketing  in  that 
city  as  follows: 2 

1  Hoard's  Dairyman. 

2  Hoard's  Dairyman,  July  19,  1912.    ( 


262  MANAGEMENT   OF   DAIRY  PLANTS 


COUNTRY  EXPENSES 

Per 
quart 
Transportation,  labor,  ice,  cans  and  stopples,  can  washing 

and  miscellaneous  items $ .  0102 

CITY  EXPENSES 

Pasteurizing,  washing,  and  bottling,  glass  jars,  etc 0103 

Salaries  of  drivers,  helpers,  foremen,  and  salesmen 0127 

Teams  expense  includes  horses,  wagons,  and  harnesses .  0070 

Miscellaneous  expense,  includes  bookkeeping,  stationery, 
advertising  matter,  car  fares,  telephone  calls,  and  bad 

debts 0038 

Total  city  expenses $ .  0338 


Total  expenses,  city  and  country .  0440 

To  this  must  be  added  shrinkage  and  loss  in  carrying  sur- 
plus   .0037 


Grand  total .  0477 

The  average  price  paid  in  the  country,  middle  zone,  from 

October  i,  1911,  to  October  i,  1912,  is,  per  quart -0390 

Net  cost,  per  quart  milk,  delivered  to  customer,  family  trade  $ .  0867 

Percentages  of  total  cost  per  quart  of  wholesale  and  retail 
from  eighty  milk  distributing  plants  in  Massachusetts  are 
presented  in  Table  XXIV  by  Cance.1  The  actual  total  expenses 
of  milk  distribution  by  the  same  dealers  are  presented  in  Fig. 
30  and  Fig.  31.  Local  conditions  greatly  influence  the  cost  of 
marketing  milk,  which  is  illustrated  by  Table  XXV.  This 
table  was  prepared  from  information  furnished  by  the  United 
States  Bureau  of  Markets  of  milk  prices  in  various  markets  of 
the  United  States  for  November,  1918.  The  Bureau  report  is 
based  on  reports  made  to  the  Bureau  of  Markets  by  city  health 
officials,  milk  dealers,  and  officers  of  milk  producers'  associa- 
tions. 

\Bulletin  173,  Mass.  Experiment  Station,  1917. 


COST  OF   MARKETING   DAIRY  PRODUCTS 


263 


264 


MANAGEMENT   OF   DAIRY   PLANTS 


TABLE  XXIV 


PERCENTAGES  OF  TOTAL  COST  PER  QUART  OF  WHOLESALE  AND  RETAIL 
MILK  (EIGHTY  PLANTS),  BY  SIZE  OR  CHARACTER  OF  BUSINESS 


/ 

Under 

5°° 
quarts 

II 

500- 

1,000 

quarts 

III 

1,001- 

2,000 

quarts 

IV 

Over 

2,000 

quarts 

V 

All 
retail 

A  verage 

Number  of  es- 

tablishments 

27 

20 

10 

3 

20 

Total  cost  

$o  .  0204 

$0.0164 

$0.0182 

$0.0293 

$0.0293 

$0.0218 

Per  cent.  .  .  . 

IOO 

IOO 

IOO 

IOO 

IOO 

IOO 

Processing  ex- 

pense   

$0.0065 

$o  .  0046 

$0  .  0045 

$0.0067 

$o  .  0090 

$o  .  0064 

Per  cent.  .  .  . 

31-8 

28.1 

24.7 

26.9 

30-7 

29-3 

Delivery  ex- 

pense   

$0.0114 

$o  .  0089 

$0.0105 

$0.0135 

$0.0160 

$0.01214 

Per  cent.  .  .  . 

55-9 

54-2 

57-7 

54-2 

54-6 

55-7 

Overhead  ex- 

pense   

$0.0025 

$0.0029 

$0.0032 

$0.0047 

$o  .  0043 

$0.00322 

Per  cent.  .  .  . 

12.3 

17.6 

17.6 

18.9 

14.7 

15-0 

Investment 

Per  plant.  .  . 

$566 

$3,325 

$5,279 

$20,594 

$2,277 

Per  1,000 

quarts  milk 

sold  

$4  30 

$12    84 

$9  5i 

$19  30 

$22    6l 

TABLE  XXV     .  265 

TABLE  SHOWING  COST  OF  HANDLING  MILK  IN  AMERICAN  CITIES 


Markets  for  which 
reports  were  obtained 


Prices  per 
quart  paid  to 
Producers  for 
milk  delivered 
F.  0.  B.  city 


Prices  charged 

by  dealer  per 

quart  of  milk 

delivered  to 

consumers 


Cost  for  han- 
dling and  dis- 
tributing one 
quart  of  milk 

including 
dealers1  profit 


Per  cent  of 

retail  price 

Paid  to  the 

producers  for 

milk  delivered 

F.  0.  B.  city 


Cents 

Los  Angeles,  Cal 9.1 

San  Diego,  Cal io-3 

Denver,  Col 7.5 

Hartford,  Conn 10. 5 

Wilmington,  Del 9.8 

Washington,  D.  C 10.5 

Atlanta,  Ga 12.5 

Peoria,  111 7.9 

Indianapolis,  Ind 7.5 

Des  Moines,  Iowa 7.8 

Dubuque,  Iowa 7.0 

Kansas  City,  Kan 8.7 

Topeka,  Kan 7.0 

New  Orleans,  La 9.5 

Baltimore,  Md 10 . 5 

Springfield,  Mass 9-75 

Detroit,  Mich 7.9 

Minneapolis,  Minn 8.1 

Kansas  City,  Mo 9.0 

Butte,  Mont 7.5 

Lincoln,  Neb .  8.2 

Omaha,  Neb 7.0 

New  York  City 9.1 

Asheville,  N.  C 8.8 

Oklahoma  City,  Okla 7.5 

Cincinnati,  Ohio 7.5 

Columbus,  Ohio 8.6 

Portland,  Ore 8.3 

Philadelphia,  Pa 9.1 

Providence,  R.  1 9.7 

Sioux  Falls,  S.  D 7.5 

Nashville,  Tenn 9.0 

Salt  Lake  City 7.1 

Richmond,  Va 10.0 

Spokane,  Wash 7.9 

Milwaukee,  Wis 8.7 


Cents 


16 

12 

16 


20 
13 
13 
15 
12 

14 
14 

16 
i? 
15 
15 
13 
16 

IS 

H 

H 

16 

16 

15 

H 

15 

14-5 

14 

16.5 

13 

18 

12.5 
15 
i5 
13 


Cents 

3-9 

5-7 

4-5 

5-5 

4.2 

6-5 
7-5 
5-i 
5-5 
7-2 
5-0 
5-3 
7.0 

6-5 

6-5 

5-25 

7-i 

4-9 

7.0 

7-5 
5-8 
7.0 
6.9 
7-2 
7-5 
6-5 
6.4 
6.2 

4-9 
6.8 

5-5 
9.0 

5-4 
5-o 
7-i 
4-3 


Cents 
70.0 
64.4 
62.5 
65.6 
70.0 
61.8 
62.5 
60.8 

57-7 
52.0 

58.3 
62.1 
50.0 

59-4 
61.8 
65.0 

52.7 
62.3 
56.2 
50.0 
58.6 
50.0 
56-9 
55-o 
50.0 
53-6 
57-3 
57-2 
65.0 
58.8 

57-7 
50.0 
56.8 
66.7 

52-7 
66.9 


266  MANAGEMENT   OF  DAIRY  PLANTS 

9.  Relation  of  Retail  Price  to  Quantity  Sold.  —  It  is  consid- 
ered by  milk  dealers  that  one  retail  wagon  should  distribute 
at  least  200  quarts  daily  in  order  to  be  operated  at  a 
profit.  Daily  sales  of  250  quarts  per  wagon  is  considered  as 
a  fair  average  business  per  driver  for  a  well-established  milk 
plant. 

The  size  of  bottles  used  and  the  amount  delivered  to  each 
consumer  are  important  factors  in  determining  the  marketing 
cost.  The  value  of  the  product  handled  is  still  another  factor 
of  importance.  It  is  considered  that  it  costs  about  the  same 
to  handle  and  market  one  quart  of  milk  and  one  quart  of 
cream;  the  profit  should  therefore  be  the  same  in  dollars  and 
cents  on  the  same  quantity.  It  is  a  fact,  however,  that  where 
there  is  a  loss  in  handling  cream  it  amounts  to  more  money  than 
the  loss  incurred  in  handling  the  same  amount  of  milk.  It  also 
costs  a  fraction  more  to  deliver  a  quart  of  cream  than  a  quart 
of  milk,  as  the  cream  customers  are  usually  more  scattered 
than  the  milk  customers  and  they  receive  cream  in  smaller 
quantities.  There  should  always  be  a  greater  margin  on  the 
smaller  quantity,  as  the  factory  labor,  office  labor,  and  cost 
of  delivery  is  the  same  for  a  pint  of  milk  as  it  is  for  a 
quart. 

The  cost  of  making  a  delivery  of  milk  and  cream  should  be 
closely  determined  and  the  price  charged  should  be  in  accord- 
ance therewith.  The  following  schedule  was  adopted  by  one 
plant  in  1916  as  a  reasonable  charge  for  the  various  sized  deliv- 
eries. This  schedule  might,  however,  not  be  suitable  to  other 
market  milk  establishments  working  under  different  conditions, 
but  it  illustrates  the  system  usually  adopted  by  most  milk  dis- 
tributors: 

i  gallon  milk  in  bulk $  .28 

i  quart  milk  in  quart  bottle 08 

i  pint  milk 05 

i  gallon  20  per  cent  cream  in  quart  bottles. .  .     i .  20 

i  quart  20  per  cent  cream 35 

i  pint  20  per  cent  cream 20 

f/t  pint  20  per  cent  cream 12 


COST   OF   MARKETING   DAIRY  PRODUCTS  267 

II.  Selling  Sweet  Cream  and  Milk  at  Wholesale.  —  As  the 

commercial  ice  cream  business  is  increasing  at  a  rapid  rate,  and 
as  the  population  of  the  cities  is  increasing,  the  demand  for 
sweet  cream  for  ice  cream  making  and  for  retail  purposes  is 
becoming  greater  and  is  also  more  difficult  to  meet.  It  is  there- 
fore possible  for  creameries  to  establish  markets  for  sweet 
cream  and  obtain  more  money  therefor  than  can  be  obtained 
by  making  the  cream  into  butter. 

The  creameries  of  the  middle  West  have  experienced  no 
difficulty  during  recent  years  in  obtaining  for  sweet  cream  a 
price  of  10  cents  or  more  above  highest  New  York  quotations  for 
extras  F.  O.  B.  their  shipping  station.  Under  such  conditions,  if 
the  quotation  of  the  New  York  market  for  extras  were  30  cents 
and  sweet  cream  were  sold  at  40  cents  per  pound  butter  fat  and  if 
the  cream  were  made  into  butter  and  sold  at  30  cents  per  pound 
then  one  pound  fat  made  into  butter  would  be  worth  30  X 

122 

—  =  36.6  cents.  Considering  that  the  cost  of  preparing  the 
100 

cream  for  marketing  it  at  wholesale  is  equal  to  the  cost  of  manu- 
facturing it  into  butter  then  a  gain  of  3.4  cents  has  been  made 
by  marketing  the  product  in  the  form  of  cream. 

If  sweet  cream  under  the  same  conditions  were  sold  at  50 
cents  per  pound  butter  fat  as  against  40  cents  per  pound  of 
butter  then  a  pound  of  fat  made  into  butter  would  be  worth 

122 

40  X =  48.8  cents,  or  a  gain  of  only  1.2  cents  would  be  ob- 

100 

tained  by  selling  sweet  cream.  It  is  fair  to  assume  that  the  cost 
of  pasteurization  and  cooling  of  the  sweet  cream  to  be  sold 
will  about  equal  the  cost  of  manufacturing  the  butter,  as 
sweet  cream  should  be  cooled  to  within  a  few  degrees  of  freez- 
ing before  it  is  shipped.  The  method  of  preparing  sweet  cream 
for  market  is  the  same  as  that  for  preparing  sweet  cream  for 
ice  cream  making. 

This  method  of  disposing  of  the  butter  fat  is  particularly 
advantageous  to  the  cooperative  creamery.  The  producers 
are  willing  to  furnish  sweet  cream  to  the  creamery  if  they  are 


268  MANAGEMENT    OF   DAIRY   PLANTS 

paid  for  the  extra  labor  involved.  The  creameries  selling 
sweet  cream  seldom  experience  much  difficulty  in  improving  the 
quality.  Even  what  is  bought  as  sour  cream  will  be  much  im- 
proved. Therefore,  we  may  consider  this  system  as  being  of 
much  educational  value  to  the  creamery  and  to  the  pro- 
ducers. 

A  creamery  located  in  a  city  may  find  it  profitable  to  sell  milk 
and  cream  to  big  consumers  and  dealers,  such  as  hotels,  res- 
taurants, bakeries,  etc.  A  route  for  such  business  was  estab- 
lished in  a  medium-sized  city  in  the  middle  West,  1915,  on 
which  the  daily  output  was  as  follows: 

Sold  Purchase  Gross 

for  cost  profit 

$  $  $ 

161  gals,  milk  at  20  cents 32.20  24.22  7 .98 

136  qts.  milk  at  8  cents 10 . 88  .4-95  5-93 

13  pts.  milk  at  5  cents 65  .23  .42 

32  gals,  cream  at  70  cents 22.40  21.32  1.08 

44  qts.  cream  at  30  cents 13 .  20  7 . 33  5.87 

5  qts.  whipping  cream  at  60  cents 3-oo  .83  2.17 

4  pts.  whipping  cream  at  35  cents i  .40  .33  i  .07 

4  half  pts.  whipping  cream  at  20  cents.  .        .80  .16  .64 

10  qts.  lactone  at  8  cents 80  .38  .42 

3  gals.  B.  milk  at  16  cents 48  .06  .42 

8  qts.  B.  milk  at  5  cents 40  .04  .36 


Total  amount  of  daily  sales $86.21  $59.85  $26.36 

The  purchase  cost  of  the  milk  was  on  an  average  $1.75  per 
hundred  pounds  delivered  at  the  creamery  or  market  milk 
plant  and  the  cream  about  40  cents  per  pound  of  butter  fat. 
The  plain  cream  as  sold  in  the  city  contained  20  per  cent  of 
butter  fat  and  the  whipping  cream  30  per  cent  of  butter  fat. 
The  cost  of  lactone  was  about  the  same  as  for  whole  milk  and  for 
buttermilk  about  two  cents  per  gallon. 

The  proportion  of  daily  expenses  to  be  charged  against  this 
route  was  approximately  as  follows,  not  including  delivery. 


COST  OF   MARKETING   DAIRY   PRODUCTS  269 

FACTORY  COSTS 

Labor  in  factory  and  office $  6.97 

Interest  on  investment,  insurance,  and  depreciation 1.40 

Power,  ice,  and  water 2.67 

Miscellaneous  expenses,  such  as  loss  on  surplus  milk  and 
cream,  loss  on  bad  accounts,  stationery,  advertising, 

etc 2.67 

$13-71 

COST  OF  DELIVERY 

Driver,  monthly  salary $  60.00 

2  horses,  feed,  and  care 36.00 

Shoeing  and  repairs,  including  painting  of  wagon 15.00 

Interest  and  depreciation 16.00 


Monthly  cost $127.00 

Daily  cost $  4.23 


Total  daily  cost $17.94 

Daily  net  profit  en  route  =  26.36  — 17.94  =  $8.42. 

By  studying  the  above  report  it  is  readily  discovered  that 
32  gallons  of  cream  were  handled  at  a  loss;  161  gallons  of  milk 
were  handled  at  a  rather  small  margin,  but  it  is  supposed  that 
these  were  all  sold  in  cans  and  were  therefore  handled  with  less 
labor  and  with  less  loss.  A  creamery  or  a  market  milk  establish- 
ment should  have  a  daily  report  giving  complete  information 
about  the  day's  sales.  It  should  preferably  be  so  ruled  that 
the  purchase  cost  and  the  gross  profit  can  be  figured  in  the 
office  before  it  reaches  the  manager's  desk. 


270 


MANAGEMENT   OF  DAIRY  PLANTS 


I 

s 
in 


H) 
PQ 


COST   OF   MARKETING   DAIRY   PRODUCTS 


271 


$S  :£; 
,Bj 


P     Q     P 


§£aS£ 
§5^  S  2 

C   w   ««   3-° 

W  rt      EH 


H 


CHAPTER  XX 

PREPARING  THE  BUTTER  FOR  MARKET 
A.  BUTTER  PACKAGES 

A  FOOD  offered  for  sale  should  possess  quality,  it  should  be 
put  up  in  a  neat  and  attractive  package,  and  it  should  be  of  full 
weight  or  measure.  The  quality  may  not  at  all  times  be  under 
absolute  control  of  the  manufacturer,  as  it  is  largely  dependent 
on  the  quality  of  raw  material  received;  but  the  appearance  and 
weight,  however,  are  under  absolute  control  of  the  manufac- 
turer. It  is  a  recognized  fact  that  in  order  to  receive  prizes  at  a 
butter  show  the  package  of  butter  should  reach  the  judges  in 
perfect  condition.  Therefore  the  package  is  usually  wrapped  in 
burlap  or  heavy  paper  or  both.  The  same  appearance  of  neat- 
ness and  carefulness  which  in  this  case  influences  the  butter 
judge  at  a  butter  show  will,  to  just  as  great  an  extent,  influence 
the  butter  buyer  and  the  consumer.  The  author  knows  of  a 
creamery  where  the  manager  required  that  each  box  of  prints 
be  wrapped  with  heavy  paper  before  shipping.  During  the 
summer  seas*on  the  paper  would  have  some  insulating  value, 
but  the  greater  value  derived  from  this  method  lay  in  the  good 
condition  in  which  this  butter  arrived  at  the  dealer's  store. 
Some  of  the  merchants  were  even  placing  this  clean  box  on  the 
counter  as  an  advertisement  for  the  butter.  In  some  places  the 
ordinary  plain  butter  boxes  are  returned  by  the  city  buyers. 
Although  this  saves  money  to  the  manufacturer,  yet  the  sys- 
tem should  not  be  encouraged,  as  the  boxes  when  returned  are 
never  clean  and  even  if  they  are  washed  their  appearance  will 
never  be  that  of  a  new  box.  Butter  put  up  in  these  boxes  will 
suffer  in  prestige  with  the  dealer.  During  the  summer  season 
butter  which  cannot  be  shipped  in  refrigerator  cars  should  be 
shipped  in  refrigerator  boxes  (Fig.  32). 

272 


PREPARING   THE   BUTTER   FOR   MARKET 


273 


I.  The  Butter  Tub.  —  The  butter  tub  is  the  most  common 
form  of  package  for  American  butter.  The  60  or  63  pound 
tub  is  generally  used,  although  tubs  are  manufactured  of  the 
following  sizes,  50  pound,  40  pound,  30  pound,  25  pound,  20 
pound,  and  10  pound.  The  larger  tubs  are  held  together  by 
five  wooden  hoops.  If  the  hoops  are  broken,  they  should  be  re- 
placed before  the  butter  is  marketed.  The  cover  is  fastened  to 
the  tub  with  four  tins  placed  at  an  equal  distance  from  each 


FIG.  32.  —  A  refrigerator  butter 
carrier. 


FIG.  33.  —  A  butter  tub 
paraffiner. 


other.  Clasps  should  not  be  used,  as  they  have  a  cheapening 
effect  on  the  package.  The  standard  butter  tub  is  manufac- 
tured from  dry  ash  wood;  spruce  is  also  used,  but  only  for 
special  markets.  Although  spruce  is  neater  in  appearance,  it  is 
objected  to  because  it  is  more  expensive  and  more  readily 
soiled,  and  if  the  tub  has  not  been  properly  prepared,  it  will 
impart  more  of  a  woody  flavor  to  the  butter. 

The  tub  is  prepared  as  follows:  the  hoops  are  first  tightened 
and  the  tub  is  washed  thoroughly  both  outside  and  inside  with 
hot  water  and  washing  powder.  It  is  then  soaked  for  about 
two  hours  so  as  to  prevent  leaking.  After  soaking  it  is  rinsed 


274  MANAGEMENT   OF   DAIRY  PLANTS 

with  cold  water  to  remove  any  sediment  which  might  adhere  to 
it  from  the  water  used  for  soaking.  It  is  now  placed  over  a 
steam  jet  for  a  thorough  steaming,  immediately  after  which  it 
is  paraffined.  For  that  purpose  a  paraffiner  fitted  up  with  a 
special  steam  jet  is  most  convenient. 

The  liner  is  next  placed  in  the  tub  in  such  a  manner  that  the 
top  thereof  will,  when  folded  over  the  butter,  overlap  from 
one-half  to  one  inch.  If  the  tub  is  not  paraffined  it  should  be 
soaked  from  eighteen  to  twenty-four  hours  in  cold  water  and 
then  rinsed.  A  couple  of  pounds  of  dry  salt  should  be  put  into 
it  and  the  tub  rolled  for  the  purpose  of  having  an  even  layer  of 
salt  adhere  to  the  inside.  The  liner  is  then  placed  and  the 
butter  should  be  packed  before  the  tub  becomes  dry  or  else 
the  salt  will  fall  to  the  bottom.  The  salt  is  added  for  the  pur- 
pose of  preventing  the  formation  of  mold  and  to  facilitate 
taking  the  butter  from  the  tub.  The  surface  of  the  tub  after  the 
butter  has  been  packed  should  be  free  from  holes  and  should  be 
covered  with  a  cloth  circle  and  with  a  sprinkle  of  salt  on  top. 
The  cover  before  being  placed  on  the  tub  should  be  thoroughly 
washed  and  dried. 

The  paraffining  of  the  butter  tub  is  of  advantage,  first  because 
it  prevents  formation  of  mold,  and  second  because  it  reduces 
shrinkage  of  butter.  Mold  may  readily  be  prevented  without 
special  treatment  of  the  tub.  The  main  factors  to  consider  are 
that  the  tubs  and  liners  are  stored  in  a  clean  and  dry  place  and 
that  the  refrigerator  is  kept  dry  and  free  from  mold.  If  liners 
have  been  exposed  to  mold  spores  they  should  be  boiled  in  a 
concentrated  salt  solution.  Rogers  l  found  the  shrinkage  from 
butter  packed  in  tubs,  not  paraffined,  to  be  .95  of  one  per  cent. 
This  loss  was  reduced  to  .17  of  one  per  cent  when  the  tubs  had 
been  paraffined. 

II.  The  Australian  Butter  Box.  —  The  Australian  butter 
box  derives  its  name  from  the  country  where  it  was  originally 
adopted  as  the  standard  package.  The  size  of  it,  inside  measure, 
is  I2X  12  X  12  inches  and  it  holds  fifty-six  pounds  of  butter. 
It  is  usually  made  of  white  spruce.  The  sides,  top,  and  bot- 

1  Circular  130,  B.  A.  I.,  Department  of  Agriculture,  1908. 


PREPARING  THE  BUTTER  TOR  MARKET         275 

torn  are  made  of  one  piece.  This  package  is  used  for  special 
orders,  particularly  for  butter  shipped  to  foreign  countries. 
These  boxes  are  prepared  for  packing  in  the  same  manner  as  the 
tubs,  but  the  side  liners  are  long  enough  so  that  when  folded  on 
top  they  cover  the  entire  surface. 

III.  Special  Square  Box.  —  Special  square  boxes  for  solid 
packed  butter  are  used  primarily  for  butter  shipped  to  the 
Pacific  coast  markets.     These  are  made  in  various  sizes  as 
determined  by  the  size  of  the  cutter  used.    The  block  of  butter 
when  removed  from  the  box  should  be  of  such  a  size  that  the 
least  amount  of  butter  has  to  be  reprinted.    These  boxes  are 
used  extensively  for  storage  when  the  butter  has  to  be  printed 
after  the  storage  season. 

IV.  Earthen  Jars.  —  Earthern  jars  are  used  extensively  in 
certain  cities  for  local  trade.    These  have  the  advantage  over 
many  other  small  packages  in  that  the  butter  packed  in  them 
is  less  exposed  to  contamination.    There  is  less  shrinkage,  and 
butter  packed  in  them  is  usually  preferred  by  the  housekeeper. 
These  jars  are  covered  with  a  parchment  circle  bearing  the 
trade-mark  of  the  manufacturer.    The  objections  to  the  earthen 
jar  are  that  they  require  more  labor  in  the  factory,  and  that 
they  give  greater  inconvenience  in  delivering  to  the  dealers. 
These  objections  are  lessened  by  the  fact  that  there  is  practi- 
cally no  loss  of  moisture  with  the  jars  and  the  cost  of  the  pack- 
age is  less  than  if  cartons  were  used,  as  the  empty  jars  are  re- 
turned. 

V.  The  Bradley  Butter  Box.  —  The  Bradley  butter  box  is 
made  from  spruce  with  tin  bands  forming  the  rim  at  top  and 
bottom.     These  boxes  are  manufactured  in  sizes  from  half 
pound  to  ten  pounds.    The  boxes  for  shipment  are  packed  in 
crates  of  various  sizes. 

VI.  The  Gem  Fiber  Butter  Package. —  The  Gem  fiber 
butter  package  is  a  fiber  box  lined  with  parchment.    It  is  much 
similar  in  shape  to  the  Bradley  box  and  is  packed  in  crates  of 
various  sizes. 

VII.  The  Butter  Barrel.  —  The  butter  barrel  is  known 
particularly  on  the  Pacific  coast  where  it  is  used  as  a  container 


276  MANAGEMENT   OF   DAIRY  PLANTS 

for  print  butter  sold  in  Alaska.  These  barrels  are  of  three  sizes, 
full  barrels  holding  180  pounds  in  two-pound  prints,  half  barrels 
holding  96  pounds  in  two-pound  prints,  and  quarter  barrels 
holding  48  pounds  in  two-pound  prints. 

These  butter  barrels  are  mostly  made  of  spruce.  They 
have  iron  hoops.  The  barrel  is  prepared  similar  to  the  butter 
tub.  It  is  first  washed  in  hot  water  and  washing  powder,  then 
soaked  for  twelve  hours,  steamed  and  paraffined.  The  barrel 
is  then  lined  with  cheesecloth  which  is  so  folded  on  the  bottom 
and  on  the  side  that  the  cloth  forms  a  bag  in  which  the  butter  is 
packed.  After  the  prints,  wrapped  in  parchment,  have  been 
packed  in  the  barrel,  the  cheesecloth  is  folded  on  top  and 
tied  with  a  string  in  a  similar  manner  as  that  of  tying  a  bag. 
The  barrel  is  now  filled  with  a  concentrated  solution  of  salt 
brine.  This  is  prepared  by  adding  35  parts  of  salt  to  100  parts 
of  water  at  ordinary  temperature.  This  is  churned  for  about 
thirty  minutes.  The  brine  thus  prepared  will  contain  about 
26  per  cent  salt.  After  the  barrel  is  partly  filled  with  brine  it  is 
headed  up  and  is  then  completely  filled  with  brine. 

Butter  thus  packed  is  often  held  for  a  year  or  more  before  it 
is  placed  on  the  table  and  often  left  without  refrigeration.  The 
brine  preserves  the  butter  reasonably  well.  Butter  made  for 
that  purpose  should  be  from  high-grade  cream,  churned  at  a  low 
degree  of  acidity,  and  should  contain  a  low  per  cent  of  protein. 

VIII.  Butter  Tins.  —  Butter  packed  in  tins  is  also  marketed 
on  the  Pacific  coast  and  sold  primarily  in  Alaska  and  in  the 
tropical  countries.  The  print  wrapped  in  parchment  is  placed 
in  a  loosely  fitting  tin.  On  top  of  the  butter  is  placed  a  small 
square  piece  of  wood  large  enough  so  it  practically  covers  the 
end  of  the  print.  The  cover  is  now  placed  on  the  tin  and  fas- 
tened in  a  crimping  machine.  It  is  then  soldered.  This  is  most 
readily  done  by  having  a  felt  pad  saturated  with  soldering 
liquid  and  a  bath  with  molten  solder.  The  part  to  be  soldered  is 
rubbed  on  the  felt  pad  and  the  tin  is  then  dipped  in  soldering 
metal.  The  wood  on  top  of  the  butter  prevents  the  hot  metal 
from  touching  the  butter  during  soldering.  The  cover  of  the 
tin  has  two  small  holes,  through  one  of  them  the  tin  is  filled 


PREPARING  THE  BUTTER  FOR  MARKET         277 

with  a  concentrated  brine,  after  which  these  holes  are  also  sol- 
dered and  the  package  is  tested  for  leakage.  It  is  advisable  that 
the  tins  be  lacquered  both  on  the  inside  and  outside. 

IX.  The  Danish  Firkin.  —  The  butter  package  most  popular 
on  the  English  market  is  the  Danish  firkin  holding  no  pounds 
of  butter.     The  firkin  is  made  of  beech  wood.     These  firkins 
are  prepared  similar  to  the  American  tub  and  lined  with  parch- 
ment paper.    The  butter  is  solid  packed  in  the  firkin. 

X.  Butter  Print  Boxes.  —  The  most  common  boxes  used 
for  prints  are  of  a  fifty-pound  size  made  from  spruce,  poplar, 
or  cottonwood.    The  inside  measure  of  these  boxes  is  usually 
13  X  13  X  9  1/2  inches.    A  flat  box  of  54  pound  size  has  a  dimen- 
sion of  23  1/4  X  14  1/2  X  5  1/4.     The  latter  box  is  of  a  neater 
appearance,  but  the  principal  objection  is  that  a  greater  surface 
is  exposed  to  the  atmosphere  and  the  butter  which  is  to  be 
shipped  without  refrigeration  during   the  summer  season  is 
more  exposed  to  the  heat.    For  local  trade  and  for  short  ship- 
ments a  fiber  box  is  very  satisfactory  and  it  is  cheaper  than  the 
wooden  box. 

B.  PACKING  THE  BUTTER 

I.  Solid  Packed  Butter.  —  Butter  when  packed  should 
have  enough  overweight  so  it  will  be  of  full  weight  at  the  time 
when  it  reaches  the  consumer  or  dealer.  A  sixty-pound  tub  of 
butter,  if  the  butter  is  of  good  body,  should  not  shrink  to  ex- 
ceed eight  ounces  in  four  weeks  if  kept  in  a  properly  cooled  re- 
frigerator. If  kept  at  a  comparatively  high  temperature  the 
loss  will  be  greater.  If  the  manager  finds  that  more  than  eight 
ounces  are  deducted  for  shrinkage  by  the  dealer  then  the  matter 
should  be  investigated  and  the  shrinkage  may  be  found  to  be 
due  to  leaky  butter,  to  overheated  refrigerator  at  the  creamery, 
to  being  overheated  while  in  transit  or  at  the  store  of  the  dealer, 
or  to  inaccurate  weighing  either  at  the  creamery  or  by  the 
dealer.  The  prepared  empty  tub  with  liners  should  be  weighed 
on  a  scale  that  is  sensitive  to  one-half  ounce.  The  weight  of  the 
tub  is  marked  on  the  hoop  of  the  tub  in  reasonably  small  figures 
written  with  a  pencil.  The  net  weight  of  the  butter  should  be 


278  MANAGEMENT   OF   DAIRY  PLANTS 

stamped  below  the  upper  hoops  and  if  eight  ounces  are  allowed 
for  overweight  and  if  the  net  weight  is  62  pounds  and  8  ounces, 
then  it  is  stamped  62  pounds.  It  is  advisable  to  have  all  tubs 
contain  the  same  amount  of  butter  by  weight,  as  by  that  system 
the  work  of  taking  inventories  is  facilitated. 

II.  Print  Butter.  —  Butter  prints  should  be  perfect  and 
square  in  form;  butter  should  not  be  printed  when  it  is  in  such  a 
soft  condition  that  the  corners  of  the  prints  will  be  rounded. 
Holes  due  to  imperfect  packing  should  be  filled,  as  their  pres- 
ence does  not  merely  advertise  poor  workmanship,  but  will  also 
lessen  the  keeping  qualities  of  the  butter.  The  usual  size  of  the 
prints  are,  one-pound  size,  45/8X2  1/2  X  21/2;  half  pound 
size,  45/8X21/2X11/4.  There  are  various  other  sizes,  but 
those  mentioned  are  the  most  common. 

When  printing  butter  it  is  advisable  to  weigh  each  print  be- 
fore it  is  wrapped,  as  the  butter  printer,  regardless  of  how  care- 
fully it  is  adjusted,  will  not  print  all  of  the  prints  the  same  size, 
as  the  weight  of  the  print  depends  on  the  condition  of  the  butter 
both  as  to  body  and  packing  as  well  as  on  the  adjustment  of  the 
butter  printer.  If  a  butter  print  is  too  small  a  sufficient  amount 
of  butter  should  be  added  to  the  print  before  it  is  wrapped.  If 
a  print  is  too  heavy  the  overweight  should  be  removed  with  a 
sharp  paddle.  Scales  used  for  that  purpose  should  be  sensitive 
to  ten  grains.  When  starting  to  print  a  churning  of  butter  the 
printer  may  need  readjustment.  The  empty  box  for  the  prints 
with  liners  should  be  weighed  and  the  weight  marked  with 
small  figures  on  the  box.  The  weight  of  the  butter  wrappers 
should  be  known;  the  weight  of  the  prints  without  wrappers  for 
a  fifty-pound  box  should  be  a  trifle  over  fifty  pounds  ;  four 
ounces  are  considered  to  be  sufficient  overweight  on  a  fifty- 
pound  box  of  print  butter.  Suppose  the  weight  of  the  box  with 
liners  is  five  pounds,  the  butter  wrappers  five  ounces,  then  the 
gross  weight  of  the  butter  should  be  5+  5/16+  50  1/4  =55  9/16 
pounds. 

i.  The  Single  Mold. — This  is  the  oldest  form  of  printer 
known.  The  disadvantage  of  this  method  of  printing  lies 
primarily  in  the  imperfect  shape  of  the  print,  the  greater  loss  of 


PREPARING  THE  BUTTER  FOR  MARKET         279 

moisture  in  printing,  and  in  the  amount  of  labor  required.  The 
shape  of  the  prints,  if  made  by  this  kind  of  a  mold,  will  depend 
upon  the  condition  of  the  butter;  hard  butter  may  be  printed 
into  nice  shaped  prints,  but  softer  butter  will  always  produce  a 
print  which  is  far  from  perfect  in  shape. 

This  printer  requires  readjustment  when  changing  to  butter 
of  different  body  or  of  different  firmness.  By  leaving  the  printer 
without  readjustment  it  may  affect  the  weight  of  the  prints  to 
the  extent  of  from  one  to  two  pounds  on  fifty  pounds  of  butter. 

The  cost  of  printing  butter  by  this  system  depends  naturally 
on  cost  of  local  labor.  Two  experienced  men  or  women,  one 
printing  and  the  other  wrapping,  can  in  ten  hours  print  and 
wrap  from  4,000  to  5,000  prints. 

2.  The  Wire  Cutter.  —  The  butter  for  this  form  of  printer  is 
packed  in  larger  molds  or  boxes  while  in  a  pliable  condition. 
The  butter  is  then  placed  in  a  refrigerator  for  hardening  and  it  is 
thereafter  cut  into  prints  with  the  wire  cutters.  Printers 
representing  this  method  are  the  Friday,  the  Challenge,  the 
Jumbo,  etc. 

This  latter  method  of  printing  may  be  considered  as  the  best 
and  most  economical.  The  prints  are  square  and  perfect.  The 
butter  is  packed  when  in  such  a  condition  that  the  minimum 
amount  of  moisture  is  lost.  The  wire  cutters  cause  the  least 
possible  loss  of  moisture,  and  the  prints,  because  the  butter  is 
more  uniformly  packed,  will  be  more  uniform  in  weight.  The 
labor  is  somewhat  reduced,  as  two  men  can  produce  more  work 
by  this  system. 

III.  Wrapping  the  Butter  Prints.  —  In  order  to  protect 
the  butter  a  special  wax  paper  is  often  used  over  the  parchment 
wrapper.  The  parchment  wrapper  itself  does  not  afford  much 
protection  from  the  absorption  of  flavors,  but  the  wax  paper 
does  and  is  of  much  value  in  that  respect.  When  properly 
wrapped  around  butter  the  wax  paper  forms  practically  an 
air-tight  covering  which  also  prevents  the  moisture  from 
leaking  out  and  penetrating  the  carton  which  is  so  common 
when  only  the  parchment  wrapper  and  the  carton  are  used. 

The  butter  carton  has  come  into  prominence  during  recent 


280  MANAGEMENT   OF  DAIRY   PLANTS 

years.  This  is  due  primarily  to  the  fact  that  it  adds  in  appear- 
ance of  the  package,  which  is  a  big  factor  in  selling  the  goods. 
It  also  makes  a  package  which  is  more  easily  handled  by  the 
dealer.  It  reduces  shrinkage  and  prevents  absorption  from 
articles  which  otherwise  might  spoil  the  flavor  of  the  butter.  To 
afford  the  greatest  amount  of  protection  and  to  remain  in  a 
clean  and  attractive  condition  such  cartons  should  be  paraffined 
on  both  sides. 

The  amount  of  labor  required  for  wrapping  the  prints  with 
the  second  wrapper  and  placing  them  in  the  cartons  is  equal  to 
about  two-thirds  of  the  amount  of  labor  required  for  printing 
and  wrapping,  differing  with  the  different  styles  of  cartons  used. 

IV.  Butter  Printing  in  Large  Factories.  —  In  larger  fac- 
tories the  cost  of  printing,  wrapping,  and  placing  the  butter  in 
cartons  may  be  materially  reduced  by  the  installation  of  more 
expensive  machinery  for  printing,  wrapping,  and  placing  the 
butter  in  cartons. 


CHAPTER  XXI 
ADVERTISING  DAIRY  PRODUCTS 

ADVERTISING  is  everywhere  recognized  as  a  valuable  business 
force.  It  offers  an  efficient,  economical  way  of  reaching  the 
public,  educating  it  to  the  merits  of  a  commodity,  stimulating, 
redirecting,  or  creating  buying  desires  and  finally  developing 
and  effecting  sales.  It  is  used  in  every  field  of  industry  and 
trade  and  for  many  unique  purposes  outside  of  these  fields.  It 
is  employed  for  every  phase  of  the  marketing  task,  from  dis- 
arming public  criticism  or  creating  good  will  to  securing  orders. 
How  generally  advertising  is  recognized  for  its  usefulness  may 
be  gathered  from  the  fact  that  something  like  a  billion  dollars  is 
annually  invested  in  it  by  the  business  men  of  the  United  States 
alone. 

Advertising  may  be  employed  in  the  creamery  business  as 
well  as  in  any  other.  There  is  nothing  in  the  nature  of  the 
manufacture  and  distribution  of  dairy  products  to  make  adver- 
tising impracticable  or  unprofitable.  On  the  contrary,  some  of 
the  outstanding,  successes  in  advertising  are  in  this  field.  Sev- 
eral brands  of  condensed  milk  have  gained  national  reputation 
and  captured  national  markets  with  the  aid  of  advertising. 
Several  brands  of  butter  are  familiar  to  housewives  in  a  large 
portion  of  the  United  States  because  of  advertising  and  many 
brands  have  gained  sectional  prominence.  One  selling  cam- 
paign, in  which  advertising  played  a  large  part,  increased  butter 
sales  from  450,000  pounds  to  7,000,000  pounds  in  five  years. 
Several  brands  of  cheese  have  been  established  in  wide  favor 
through  advertising,  while  many  special  advertised  brands  of 
ice  cream  command  the  markets  in  various  cities  and  their 
adjoining  territories. 

In  the  creamery  business,  advertising  serves  several  purposes, 
all  of  which  have  to  do  with  marketing  either  directly  or  in- 

281 


282  MANAGEMENT   OF   DAIRY  PLANTS 

directly.  Some  creameries  may  not  find  it  desirable  to  use 
advertising  for  all  of  their  purposes;  some  may  prefer  to  sell 
their  entire  output  on  the  commission  market,  and  therefore 
they  may  not  need  advertising  to  aid  them  in  marketing.  But 
such  concerns  may  find  advertising  valuable  for  gaining  new 
patrons  or  holding  the  old,  for  example,  and  maintaining  good 
will 

THE  PURPOSES  OF  ADVERTISING 

I.  Advertising  to  Aid  Promotion.  —  When  a  creamery  busi- 
ness is  in  the  organization  stage,  or  is  being  enlarged,  or  for  any 
other  reason  needs  promotion,  advertising  maybe  used  to  put  the 
business  properly  before  the  people  who  are  to  be  interested  as 
stockholders,  or  patrons.    It  may  be  used  to  create  a  favorable 
community  attitude   and   secure   the   confidence   of  business 
men,  bankers,  and  farmers.     It  may  be  used  to  enlarge  the 
list  of  patrons  in  new  or  old  territory.    It  must  not  be  under- 
stood that  advertising  can  take  the  place  of  effective  personal 
solicitation  in  these  matters,  but  it  can  pave  the  way  for  per- 
sonal work  and  support  it. 

More  or  less  advertising  space  may  be  advantageously  bought 
for  these  purposes.  Local  newspapers  will,  as  a  matter  of  news 
and  also  of  community  pride  and  welfare,  give  considerable 
space  to  the  promotion  of  a  sound  creamery  proposition,  but 
they  should  not  be  expected  to  donate  all  the  space  that  may  be 
required  to  promote  the  business  phases  of  the  project,  because 
advertising  space  is  the  most  important  commodity  they  have 
to  sell.  Moreover,  their  cooperation  will  be  more  thorough  if 
they  are  made  to  feel  that  benefits  are  mutual. 

Promotion  advertising  ought  to  be  written  conservatively; 
it  should  be  hopeful  or  optimistic,  but  not  over-enthusiastic  nor 
too  generous  in  its  promises  of  returns.  It  should  keep  well 
within  what  may  be  accomplished  and  seek  to  establish  confi- 
dence. 

II.  Advertising  for  Prestige  and  Good  Will.  —  Prestige 
and  good  will  are  not  secured  ordinarily  except  through  years  of 
satisfactory  dealing  with  the  public.    Yet  they  may  be  devel- 


ADVERTISING   DAIRY   PRODUCTS  283 

oped  rapidly  by  advertising.  Through  advertising,  a  business 
may  be  made  familiar  to  the  trade  or  to  consumers  in  months 
where  otherwise  it  might  take  years.  If  the  good  points  of  a 
creamery  business,  its  fair  dealing  and  the  excellence  of  its  but- 
ter, cheese,  or  ice  cream  are  again  and  again  put  before  buyers 
in  an  interesting,  skillful  way,  they  will  soon  come  to  believe 
what  they  read  and. the  result  will  be  strong  prestige  and  a 
valuable  good  will.  Too  often  a  creamery  goes  on  year  after 
year  doing  business  honestly  and  manufacturing  a  high-class 
product  without  its  constituents  realizing  it  or  thinking  very 
much  about  it,  because  it  doesn't  advertise  these  facts  and  thus 
emphasize  them.  The  result  is  that  its  prestige  and  good  will 
grow  slowly.  Advertising  to  build  good  will  must  be  done 
skillfully  and  it  must,  of  course,  have  back  of  it  honest  methods 
and  a  high-quality  product. 

III.  Advertising  to  Establish  a  Trade-Mark.  —  If  a  cream- 
ery can  make  the  people  in  its  trade  territory  think  not  merely 
of  "butter  "  when  they  think  of  buying  butter,  but  of  its  special 
brand  of  butter,  it  has  accomplished  something  that  counts 
much  toward  success.    This  close  association  of  a  trade  name 
and  product  cannot  be  established  in  any  other  way  as  quickly 
or  as  effectively  as  through  advertising.    It  may  be  possible, 
of  course,  to  bring  it  about  through  many  years  of  selling  with- 
out sepcial  advertising,  but  no  business  can  afford  to  wait  long 
enough  to  do  it  in  that  way.     By  constantly  associating  the 
product  and  the  trade  name  in  newspapers,  on  billboards,  on 
window  cards,  in  circulars  and  booklets,  the  two  are  fixed  to- 
gether in  the  minds  of  buyers  in  very  quick  time.    This  result 
is  worth  much  to  the  manufacturer  and  will  of  itself  justify 
the  investment  of  money  in  advertising. 

IV.  Advertising  to  Educate.  —  The  education  of  the  public 
as  to  the  value  of  a  particular  creamery  commodity  is  necessary 
to  interest  them  in  buying  that  commodity.     That  is  true 
whether  it  is  butter,  which  they  have  long  been  accustomed  to 
buying,  or  whether  it  is  specially  prepared  market  milk  or  ice 
cream,  which  are  not  so  well  known  to  them.    It  takes  a  good 
deal  of  persuasion  to  stir  people  out  of  an  old,  deep  rut  of  buying. 


284  MANAGEMENT   OF   DAIRY  PLANTS 

That  is  especially  true  of  dairy  products.  For  example,  to  most 
folks  butter  is  merely  butter  and  milk  is  merely  milk  and  ice 
cream  is  merely  ice  cream.  They  cannot  be  induced  to  buy  skill- 
fully prepared  products,  insured  as  to  wholesomeness  and  high 
food  value,  without  first  having  been  educated  to  believe  that  it 
is  worth  while  to  buy  such  products  and  pay  more  for  them  than 
for  ordinary  butter,  milk,  or  ice  cream.  If  the  public  are  to  buy 
high-quality  butter,  they  must  be  told  how  high-quality  butter 
is  made,  how  its  flavor  is  secured,  how  it  is  packed  and  pro- 
tected against  contamination,  how  it  excels  in  food  value,  and 
how  it  provides  certain  elements  for  human  growth  and  health. 
Not  until  they  understand  these  things  can  the  public  be  dis- 
criminating. 

If  a  creamery  plans  to  manufacture  and  sell  ice  cream,  it 
must  in  many  communities  create  a  new  demand  for  it;  it  must 
convince  many  housewives  that  ice  cream  when  properly  made 
is  not  merely  a  confection,  but  a  substantial  food,  and  that  they 
are  not  indulging  in  a  luxury  in  buying  it  and  serving  it,  but 
that  they  are  making  an  economical  addition  to  the  bill  of  fare. 

If  a  creamery  takes  up  cheese  production,  it  likewise  has  an 
educational  task  on  its  hands  to  make  its  constituency  under- 
stand that  cheese  is  one  of  the  most  economical  of  foods  as  well 
as  one  of  the  most  appetizing.  The  patrons  of  most  creameries 
do  not  know  this  and  consequently  cannot  be  expected  to  buy 
enough  cheese  to  make  its  manufacture  profitable  without  first 
being  educated  to  the  buying  point. 

This  education  is  best  accomplished  through  advertising. 
Of  course,  it  might  be  carried  on  through  personal  salesman- 
ship, or  by  letting  folks  find  out  the  value  of  these  products  for 
themselves,  but  the  one  method  would  be  too  expensive  and  the 
other  too  slow.  Advertising  has  well  been  termed  "the  natural 
and  effective  business  missionary."  It  furnishes  a  way  of 
educating  the  public  quickly  and  at  comparatively  small  ex- 
pense. Nowhere  are  its  services  more  needed  to-day  than  in  the 
dairy  business  generally,  where  so  many  conditions  and  cir- 
cumstances have  conspired  against  its  proper  growth  and 
expansion. 


SPEND  YOUR  MONEY  WISELY 

When  You  Buy  Food  Divide  $10.00 
As  Follows  for  Best  Results: 

|  Milk  and  Its  Products  (Butter.  Ice  Cream  and  Cheese)  S4.40J 

"1  $1,70 


Bread  and  Cereals 


Meat  and  Fish 


j  $1.30 
I  $1.20 


60  cents 
50  cents 
30  cents 


Dr.  Sbenua  of  ColuaMl  Uohmiiy  «d  <rtb« 
authorities  My: 

Tb*  tvenf •  AjMrtctn  f  uuly't  food  MpmUniN* 
Now  Ar«       ftbould  B* 
M~iM.SF.fc  MX  lift 

Mb  «J  &***&  »  «• 

«J  Cmk  19  I) 


II 


If 


will  M  MOM  MLK.  BtmtR.  ICE  CREAM  AND 
SC-Mn  «i«ibU  *id  fr-ta.  «U  IM  •«!  wW  ft^. 

You  win  have  better  health-be  more 
efficient-ami  save  money. 


NATIONAL  DAIRY  COUNCIL-Chicatfo.Ill 


FlG.  34 


FOOD  COMPARISONS 

These  Lines  Show  the  Amounts  of  Actual  Food  Secured  When  One 
Dollar  Is  Spent  for  Any  of  the  Following  Foods  at  Prices  Named 


The  cheapest  food 


n«j)  tt  ISe  •  poua« 


REMEMBER 


lood*  emcepi  egj{*  »nd  certiin  IMVM.    It  i*  lh« 

BUTTTEVlCE'cR'tAM  mm!  CHK.ESE  whicti 
pieces  thCM  foods  in  •  cl».«  by  thvmMlvm.  M 
FOODS  A.BSOLUTH.Y  NECESSARY  to* 
«h«  growth  of  lb«  chilO  »nd  ihc  ho^lh  ol  Ik* 


iTNATIONAL  DAIRY  COUNCIL-Chica^o.Ill 


FIG.  35.  —  Advertising  the  food  value  of  dairy  products. 

285 


2&6  MANAGEMENT   OF  DAIRY  PLANTS 

V.  Advertising  to  Back  Up  the  Selling  Force.  —  Every 
well-managed  business  seeks  to  give  the  fullest  support  and 
cooperation  to  its  selling  force,  whether  it  be  its  own  salesmen 
and  solicitors  or  jobbers  or  retailers  who  handle  the  goods. 
Advertising  provides  an  effective  and  economical  means  for 
providing  that  support  and  cooperation.    It  may  be  sent  out 
ahead  of  the  salesman  or  the  retailer  to  prepare  the  way  for  him. 
If  a  creamery  takes  up  the  manufacture  of  cheese,  advertising 
may  be  used  to  inform  the  retail  merchant  concerning  its  plans 
and  products.    Then  when  its  salesman  calls  on  the  merchant 
he  finds  he  is  saved  from  putting  a  lot  of  valuable  time  into 
simple  explanations  because  the  advertising  has  taken  care  of 
that ;  he  needs  to  concern  himself  only  with  the  real  business  of  a 
salesman  and  get  the  order.    Likewise,  advertising  may  be  used 
to  acquaint  the  buying  public  with  the  product  and  arouse  its 
desire  for  it,  thereby  saving  the  retail  merchant  much  valuable 
time  in  making  explanations  to  introduce  the  new  product. 
Advertising  will  do  this  preliminary  educational  work  much 
more  economically  than  the  salesman  or  merchant  can.    More- 
over, both  a  selling  force  and  retail  distributors  will  work  more 
enthusiastically  for  a  product  that  is  being  promoted  skillfully 
through  advertising. 

Advertising  for  Direct  Sales.  —  Some  lines  of  business  which 
distribute  direct  to  customers  find  advertising  a  satisfactory 
means  of  bringing  about  sales.  Frequently  a  creamery  is  so 
situated  that  it  is  best  for  it  to  build  up  direct  distribution.  It 
may  not  economically  maintain  a  soliciting  force  to  make  house- 
to-house  calls  and  it  must  then  rely  upon  advertising  to  reach 
the  public.  Then  advertising  must  combine  many  of  the  pur- 
poses heretofore  named;  it  must  be  educational,  it  must  help  to 
establish  a  trade-mark,  it  must  help  to  create  good  will,  it  must 
present  selling  arguments  and  stimulate  action. 

VI.  "  Policy  "  Advertising.  —  "  Policy  "  advertising  is  a 
name  given  to  advertising  bought  -not  so  much  for  the  direct 
object  of  increasing  business  as  to  secure  or  maintain  the  good 
will  of  influential  individuals  or  groups.    It  includes  much  of  the 
advertising  in  society  programs,  menus,  hotel  registers,  and  like 


ADVERTISING   DAIRY   PRODUCTS  287 

mediums.  Usually  it  is  sound  business  not  to  advertise  except 
when  there  is  reason  to  believe  it  will  bring  returns,  yet  often 
"policy  "  advertising  seems  unavoidable.  It  should  be  reduced 
to  a  minimum.  Many  times  it  is  better  policy  to  make  gifts 
outright  and  maintain  advertising  on  a  sales-promotion-getting 
basis. 

ESSENTIALS  IN  CREAMERY  ADVERTISING 

Before  a  creamery  can  make  satisfactory  use  of  advertising, 
its  business  must  meet  several  requirements.  It  must  have  a 
product  worth  advertising  and  which  lends  itself  to  advertising; 
that  product  should  be  put  up  in  distinctive  and  convenient 
packages,  if  possible,  bearing  a  trade-mark  or  brand  name; 
there  must  be  a  definite  appropriation  for  advertising;  there 
must  be  a  complete  selling  and  advertising  plan,  worked  out  to 
the  last  step  by  which  the  product  reaches  the  consumer;  the 
advertising  must  be  in  charge  of  some  one  who  will  give  it 
intelligent  attention;  and  finally,  honest  goods,  honest  methods, 
and  thorough  service. 

I.  The  Product.  —  Successful  advertising  demands  first  of 
all  a  product  that  lends  itself  to  advertising.     The  product 
must  have  quality,  of  course,  but  it  must  have  something  more 
than  that;  it  must  also  have  individuality.    That  is,  it  must  be 
different  from  the  common  run  of  such  products. 

If  the  product  is  "just  butter,"  for  example,  no  different  from 
the  great  mass  of  ordinary  creamery  butter,  than  advertising  is 
not  likely  to  aid  very  much  in  marketing  it;  that  kind  of  butter 
is  probably  best  sold  on  the  commission  market.  It  lacks  good 
talking  points  and  advertising  must  have  talking  points.  It 
isn't  worth  the  extra  price  that  advertising  should  get  for  it. 
But  if  a  creamery  manufactures  butter  of  uniform  high  quality, 
into  which  an  efficient  butter  maker  has  put  enough  brains, 
skill,  and  individuality  to  make  it  different,  then  advertising 
will  help  to  find  a  special  market  for  it  at  special  prices. 

II.  The  Package.  —  In  dairy  manufacturing,  the  package  be- 
comes so  closely  a  part  of  the  product  itself  that  it  is  usually 


288  MANAGEMENT   OF   DAIRY   PLANTS 

dealt  with  from  the  manufacturing  standpoint.  It  is  used 
because  it  must  be  used;  a  container  is  necessary.  It  is  generally 
made  as  cheaply  as  it  can  be  made  and  still  serve  its  purpose, 
which  is  to  insure  the  delivery  of  the  product  to  the  consumer 
in  convenient  form  and  quantity  and  without  loss  of  quality 
or  danger  of  contamination.  Its  cost  is  usually  charged  in  the 
cost  of  manufacture. 

Yet  the  package  may  be  more  than  a  mere  container;  it  may 
also  be  a  valuable  aid  to  selling  and  one  of  the  important  factors 
in  advertising.  When  properly  designed  and  used,  the  package 
does  not  merely  supply  a  necessity;  it  also  furnishes  an  oppor- 
tunity— an  opportunity  to  give  the  goods  additional  favorable 
publicity.  At  the  time  of  buying,  the  package  is  the  one  thing 
that  strikes  the  eye  of  the  buyer.  It  needs,  therefore,  to  be 
considered  from  the  selling  and  advertising  standpoint  as  well 
as  from  the  manufacturing  standpoint. 

If  the  package  is  to  be  something  of  an  advertisement  in  it- 
self, it  must  fulfill  certain  requirements:  First,  it  must  have 
attention  value.  Through  its  design  and  color  and  the  printed 
matter  on  it,  it  should  strike  the  eye  of  the  consumer  and  get 
his  notice  when  he  buys  it  or  when  he  sees  it  on  display;  the 
product  will  then  mean  more  to  him  and  he  will  be  more  likely 
to  ask  for  it  another  time.  Too  many  creamery  packages  fail  to 
make  any  impression  because  they  are  commonplace  and  do 
not  stand  out;  they  are  not  different.  Second,  it  must  have 
interest  value.  After  a  package  has  secured  attention,  it  must 
arouse  favorable  interest;  the  consumer  must  also  like  it. 
The  package  must  be  attractive;  it  must  please  the  eye 
through  its  good  design,  through  its  well-arranged  printed 
matter,  through  proper  use  of  colors;  its  appearance  must 
be  in  harmony  with  the  product,  suggesting  a  clean,  whole- 
some, good-tasting  product.  Third,  it  must  have  individual- 
ity. A  package  should  be  designed  and  printed  so  that  it 
will  not  be  mistaken  for  any  other.  It  should  identify  the 
product  it  contains  so  that  the  consumer  who  likes  it  will  be  able 
to  remember  it  easily  and  make  certain  that  some  other  prod- 
uct will  not  be  pushed  off  on  to  him.  A  great  majority  of 


ADVERTISING  DAIRY  PRODUCTS  289 

creamery  packages  are  too  much  alike.  Fourth,  it  should  carry 
the  trade-mark.  At  every  opportunity  the  trade-mark  or  trade 
name  should  be  used  in  advertising  a  product.  There  is  no 
better  opportunity  than  in  such  close  association  with  the  prod- 
uct as  is  possible  on  the  creamery  package. 

A  trade-mark  serves  two  fundamental  purposes.  It  identi- 
fies a  product  or  distinguishes  it  from  similar  products  of  other 
manufacturers  and  it  provides  the  purchaser  with  an  easy  way 
of  recollecting  it  when  he  again  needs  that  kind  of  a  product. 
Both  of  these  purposes  must  be  attained  by  every  manufac- 
turer to  establish  a  permanent  market  for  his  goods  and  they 
cannot  be  attained  readily  without  a  trade-mark.  In  addition, 
the  trade-mark  serves  a  third  important  purpose:  it  gives  con- 
tinuity and  repetitious  value  to  advertising.  When  the  trade- 
mark is  used  in  every  advertisement,  in  a  more  or  less  con- 
spicuous way,  it  links  each  advertisement  with  every  other  and 
makes  them  a  unit;  when  it  is  not  used,  each  advertisement 
stands  alone  and  gets  very  little  aid  from  advertisements  that 
have  gone  before. 

To  fulfill  its  purposes,  a  trade  name  should  meet  certain  re- 
quirements. First,  it  must  be  distinctive  or  different.  Then  it 
will  be  more  readily  remembered  and  be  less  likely  to  be  con- 
fused with  other  trade-marks.  Second,  it  must  be  legible  and 
easily  read  or  taken  in  by  the  eye.  Words  or  geometrical  figures 
that  are  worked  into  intricate  designs  are  often  so  difficult  to 
see  clearly  that  no  effort  is  made  to  remember  them.  Third,  it 
must  be  brief  or  simple.  If  a  word  or  words,  the  briefer  the 
better  for  conveniently  storing  it  in  the  memory  and  recalling 
it.  If  a  figure,  the  less  there  is  to  it  the  better  for  the  same 
reason.  Fourth,  if  it  is  a  word  or  words,  it  should  have  a  pleas- 
ing sound  and  be  easily  spoken.  Fifth,  it  should  be  suggestive 
of  the  product  and  be  readily  understood.  Sixth,  it  should  be 
applicable,  if  possible,  to  all  the  products  of  the  creamery.  If 
one  trade-mark  is  used  for  all  products,  then  the  advertising 
done  for  each  will  help  all  the  others;  the  good  reputation  of  one 
will  be  extended  to  the  others,  which  is  highly  desirable.  Sev- 
enth, it  should  be  valid.  It  should  be  possible  to  defend  the 


2QO  MANAGEMENT   OF   DAIRY   PLANTS 

trade-mark  chosen  against  all  infringement.  That  may  not  be 
so  important  to  the  smaller  creamery  with  merely  local  trade, 
but  it  is  highly  important  to  the  larger  concern.  Eighth,  it 
should  be  permanent.  It  costs  too  much  to  establish  a  trade- 
mark to  abandon  it  for  a  new  one. 
Trade-marks  are  made  up  mainly  of  materials  which  have 


BIT     ER 


FIG.  36.  —  A  well  designed  trade  mark. 

been  classified  in  four  groups:  Pictures,  words,  syllables,  or  dis- 
connected groups  of  letters. 

Careful  tests  indicate  that  pictures  rank  first  as  to  the  ease 
with  which  they  are  recognized  and  the  accuracy  with  which 
they  are  recalled;  forms  second,  words  third,  and  syllables 
fourth.  While  pictures  have  this  advantage  in  tests,  yet  they 
are  not  satisfactorily  reproduced  in  all  advertising  matter  and 
on  all  packages.  Moreover,  their  satisfactory  reproduction 


ADVERTISING  DAIRY  PRODUCTS  29 1 

involves  greater  expense  in  art  work  and  printing.  Names  or 
words  are  perhaps  most  widely  used  because  they  lend  them- 
selves nicely  to  many  uses;  moreover,  experience  shows  that 
they  are  readily  established  in  public  favor  within  a  short  time. 

A  trade-mark  may  be  established  in  either  one  of  two  ways, 
by  registration  or  by  adoption  and  use.  Registration  is  the 
most  certain  way  to  guarantee  exclusive  right  to  a  trade-mark 
and  registration  is  quite  easily  secured  through  application  to 
the  United  States  Patent  Office  (provided  it  is  to  be  used  in 
interstate  trade).  By  adopting  a  trade-mark  and  using  it 
continuously  exclusive  right  thereto  may  be  established,  but 
the  task  of  defending  that  right  is  more  difficult  than  in  the  case 
of  a  registered  trade-mark.1 

If  it  is  proposed  to  make  extensive  use  of  a  trade-mark  or 
trade  name,  a  legal  specialist  on  this  subject  should  be  consulted 
about  the  name  or  design  to  make  sure  that  it  can  be  properly 
protected.  In  place  of  such  special  advice,  this  general  state- 
ment as  to  trade-marks'  validity  may  be  of  assistance: 

"Generally  speaking,  a  trade-mark  to  be  valid  must  not 
be  the  name  of  a  person,  name  of  a  place,  descriptive  of  the 
goods  or  of  the  quality  of  the  goods,  or  old  in  the  class  into 
which  the  goods  fall  on  which  the  mark  is  to  be  used,  according 
to  the  arbitrary  classification  of  the  Patent  Office." — W.  A. 
Knight,  trade-mark  specialist  in  Judicious  Advertising,  Dec., 
1911. 

In  recent  years  there  has  been  a  marked  trend  toward  the 
coined  or  invented  word  or  trade  name.  They  are  more  likely 
to  be  valid,  they  are  usually  strong  in  attention  value,  and  if 
they  are  suggestive  they  are  excellent.  Sometimes,  however, 
they  are  not  very  easily  remembered. 

III.  A  Definite  Appropriation.  —  Advertising  is  best  carried 
on  if  a  definite  sum  of  money  is  set  aside  for  a  year,  or  a  selling 
season  or  a  campaign.  That  is  true  whether  a  business  can 
afford  to  invest  only  $200  a  year  in  advertising  or  $20,000. 
Moreover,  it  is  best  to  prepare  a  budget  which  divides  the 

1  Complete  information  on  trade-mark  registration  will  be  furnished  on  request 
by  the  United  States  Patent  Office  in  Washington;  the  fee  for  registration  is  $10. 


292  MANAGEMENT   OF   DAIRY  PLANTS 

appropriation  among  the  different  kinds  of  advertising  to  be 
used.  Without  a  definite  appropriation,  advertising  is  likely  to 
go  on  in  a  haphazard  way,  without  continued  purpose,  without 
enthusiasm.  Without  an  appropriation,  the  man  in  charge  of 
the  advertising  cannot  be  certain  that  he  can  afford  to  do  this 
or  that  thing.  With  an  appropriation  for  a  year,  advertising 
may  be  planned  for  a  year;  each  step  may  be  taken  with  satis- 
faction because  money  has  been  set  aside  for  it,  and  when  the 
total  appropriation  is  kept  in  mind  it  is  easily  determined 
whether  a  particular  advertising  outlay  is  reasonable  or  not. 

The  amount  of  money  that  should  be  set  aside  for  advertising 
by  any  creamery  business  can  be  best  determined  by  the  mana- 
ger after  a  careful  study  of  the  special  circumstances  and  trade 
conditions  of  his  business.  Even  then  he  cannot  be  very  cer- 
tain as  to  the  percentage  of  his  gross  sales  he  should  set  aside  for 
advertising  until  he  has  tried  out  an  annual  appropriation  or 
two,  and  studied  the  results  of  his  advertising  expenditure. 

A  few  general  principles  may  guide  in  determining  an  approp- 
riation. Advertising  should  always  pay  for  itself  and  in  addition 
return  a  profit,  either  through  increased  sales,  more  economical 
selling  or  strengthened  good  will  or  some  other  valuable  thing, 
and  the  appropriation  should  not  be  so  large  that  such  a  return 
is  not  reasonably  probable.  A  new  business  requires  a  larger 
percentage  of  gross  sales  for  advertising  than  an  old-established 
business.  If  it  is  intended  to  increase  production  and  secure 
larger  sales  in  old  territory  or  new,  the  appropriation  must  be 
larger  than  if  it  is  intended  merely  to  hold  an  established  trade. 
If  competition  is  keen,  the  appropriation  percentage  will  have 
to  be  larger  than  if  there  is  no  competition.  Generally,  it  is  best 
to  appropriate  conservatively  until  experience  proves  what  is  a 
sound  basis  of  appropriation  for  a  particular  business. 

The  appropriation  set  aside  for  a  year's  advertising  is  usually 
a  certain  percentage  of  the  gross  sales  of  the  preceding  year. 
Creameries  doing  a  wholesale  business  appropriate  all  the  way 
from  o.i  of  one  per  cent  of  their  gross  sales  to  i  per  cent.  Cream- 
eries doing  a  retail  business  necessarily  appropriate  a  larger 
percentage,  often  as  much  as  5  per  cent  of  gross  sales. 


ADVERTISING   DAIRY   PRODUCTS  293 

It  is  convenient  to  keep  a  special  account  for  advertising 
rather  than  charge  expenditures  for  this  purpose  to  the  general 
expense  account. 

IV.  A  Definite  Plan.  —  As  important  as  an  appropriation  is 
a  plan  for  the  year's  or  season's  advertising.  There  should  first 
be  an  objective.  It  is  essential  to  make  a  careful  study  of  the 
marketing  problems  of  the  business  to  learn  how  advertising 
may  help  to  deal  with  them.  Perhaps  the  trade  needs  to  be 
educated  as  to  quality;  or,  maybe  a  trade  name  or  brand  needs  to 
be  popularized;  or/possibly  it  needs  to  be  interested  in  a  prod- 
uct it  has  not  used  extensively  previously.  Then  these  needs 
should  become  the  aims  of  the  year's  advertising.  Next  there 
should  be  a  determination  of  the  general  arguments  or  appeals 
that  are  to  be  made  through  advertising  to  accomplish  these 
objectives.  Then  it  is  important  that  there  be  a  careful  study 
of  the  buying  public  to  which  the  arguments  or  appeals  are 
to  be  presented  so  that  they  may  be  presented  most  effectively. 
Who  are  the  people  for  whom  the  advertisements  are  to  be 
written;  what  are  their  financial  circumstances;  what  are  their 
prejudices  and  likes;  what  and  how  do  they  think  —  these  and 
other  questions  like  them  must  be  asked  and  answered.  Fol- 
lowing that,  the  plan  must  determine  what  advertising  mediums 
shall  be  used  —  newspapers,  circular  letters,  exhibits,  street-car 
cards,  billboards,  booklets,  etc.,  and  how  much  of  the  appro- 
priation shall  be  devoted  to  each.  Finally,  the  advertisements 
and  the  letters  and  the  signs,  etc.,  must  be  prepared  to  fit  the 
plan,  and  they  should  be  prepared  well  in  advance  of  their  use 
so  that  they  may  be  carefully  written  and  revised,  put  into  type, 
and  perhaps  again  revised  in  proof.  In  the  best  managed  cam- 
paigns every  item  of  advertising  is  prepared  and  approved  be- 
fore a  single  item  is  published. 

That  sort  of  planning  demands  much  thought  and  hard  work, 
but  it  pays.  It  puts  brains  and  energy  into  advertising.  It 
lifts  advertising  out  of  uncertainty  into  certainty.  To  plan  is 
always  the  intelligent  thing  to  do.  Without  planning  adver- 
tising is  bound  to  be  unintelligent,  and  unprofitable  as 
well. 


294  MANAGEMENT   OF   DAIRY  PLANTS 

V.  An  Advertising  Manager.  —  If  a  business  is  to  make  use 
of  advertising,  some  one  connected  with  that  business  ought  to 
assume  the  duties  of  an  advertising  manager.  In  the  smaller 
creamery  those  duties  are  likely  to  fall  upon  a  man  who  is 
already  overloaded  with  work,  but  even  that  man  should  find 
some  time  to  give  special  thought  and  attention  to  advertising, 
if  the  business  is  to  make  use  of  advertising.  He  will  find  not  a 
little  pleasure  in  it.  He  should  put  a  good  book  or  two  on  ad- 
vertising on  his  own  shelves  and  borrow  what  his  public  library 
has  to  offer  him;  he  should  read  some  magazine  that  deals  with 
advertising  and  marketing  problems;  he  should  study  good 
advertisements,  not  only  of  other  concerns  in  his  line  of  busi- 
ness, but  in  other  lines,  and  through  his  study  discover  what  it 
is  that  makes  their  advertising  effective;  he  should  file  examples 
of  advertising  that  are  likely  to  be  helpful  to  him  so  that  when 
he  writes  his  own  advertising  he  may  have  the  help  of  good 
models.  He  should  interest  himself  in  the  local  advertising  club, 
if  there  is  one,  and  cultivate  the  acquaintance  of  men  in  the 
newspaper  and  business  fields  who  are  experienced  in  adver- 
tising. Circumstances  may  not  permit  the  part-time  adver- 
tising manager  to  do  all  of  these  things,  but  he  should  do  as 
many  as  possible.  After  all,  the  success  of  a  business  depends 
very  largely  on  its  selling  end,  and  advertising  is  an  important 
factor  in  selling. 

MEDIUMS  FOR  CREAMERY  ADVERTISING 

I.  Newspapers  and  Magazines.  —  In  any  campaign  to  pro- 
mote creamery  product  sales,  the  largest  part  of  the  appro- 
priation is  likely  to  be  invested  in  space  in  newspapers  and  other 
publications.  Through  them  it  is  possible  to  reach  the  buying 
public  quickly,  conveniently,  and  economically.  Frequently, 
a  well-established  newspaper  in  a  smaller  city  will  go  into  75  per 
cent  of  the  homes  of  the  city.  In  one  such  middle  Western  city 
the  one  daily  newspaper  enters  3,500  out  of  4,000  homes.  It 
sells  its  space  at  50  cents  an  inch  (having  also  a  large  outside 
circulation).  For  $5,  a  selling  message  can  be  sent  into  those 


ADVERTISING   DAIRY   PRODUCTS  2Q5 

3,500  homes  at  much  less  cost  then  through  any  other  medium. 
Granting  that  this  space  may  not  be  as  effective  as  a  circular 
letter,  for  example,  the  advantage  in  lower  cost  is  still  heavily 
in  favor  of  the  newspaper  space.  For  that  reason,  from  65  to  75 
per  cent  of  the  total  expenditures  for  advertising  in  the  United 
States  is  for  newspaper  and  magazine  space. 

The  value  of  any  newspaper  or  magazine  in  advertising 
creamery  business  depends  upon  several  things: 

First,  it  depends  upon  the  way  in  which  the  circulation  fits 
the  creamery's  trade  territory.  If  a  creamery  has  the  problem 
of  reaching  the  people  of  its  home  city,  then  that  local  news- 
paper with  the  largest  list  of  home  subscribers  is  likely  to  be 
most  effective,  even  though  the  others  may  have  a  greater  total 
of  subscribers  in  the  city  and  outside.  If  the  problem  is  to  in- 
crease ice  cream  sales  in  half  a  dozen  nearby  towns  and  cities, 
then  best  results  are  likely  to  be  secured  by  selecting  a  news- 
paper of  good  local  circulation  in  each  of  the  towns.  Some  one 
newspaper  of  general  circulation  may  have  many  subscribers 
in  each  of  the  six  towns,  but  it  likely  has  also  a  considerable 
circulation  in  twenty  or  thirty  other  towns  which  has  little 
value  to  the  ice  cream  manufacturer;  the  money  he  puts  into 
that  circulation  outside  of  his  trade  territory  is  largely  wasted. 
Newspapers  and  magazines  of  interstate  or  national  circulation 
are  not  valuable  to  the  creamery  with  a  business  that  is  more  or 
less  localized. 

Second,  the  advertising  value  of  a  newspaper  depends  upon 
whether  it  reaches  the  kind  of  people  a  creamery  wants  to  reach. 
To  promote  the  sales  of  high-quality  butter  a  newspaper  with  a 
smaller  but  select  list  of  subscribers  may  bring  better  returns 
than  a  newspaper  with  a  larger  list  which  includes  a  big  per- 
centage of  people  who  are  not  prospective  customers.  That 
newspaper  in  a  community  which  reaches  the  housewives  is 
likely  to  be  best  for  creamery  and  other  food  products. 

Third,  the  advertising  value  of  a  newspaper  depends  upon 
whether  it  regularly  carries  much  high-class  advertising.  If 
one  publication  carries  more  business  announcements  in  its 
advertising  columns  than  another,  it  is  quite  certain  that  house- 


296  MANAGEMENT   OF   DAIRY  PLANTS 

wives  will  read  its  advertising  columns  more  thoroughly  and  its 
space  value  is  correspondingly  larger. 

The  price  of  advertising  space  in  newspapers  varies  directly 
according  to  circulation.  In  publications  of  smaller  circulation 
it  is  sold  by  the  column  inch,  which  is  a  space  one  column  wide 
and  one  inch  deep.  In  publications  of  larger  circulations  it  is 
sold  by  the  agate  line,  of  which  it  takes  fourteen  to  make  a 
column  inch.  There  is  no  uniform  basis  for  prices,  although  the 
charge  for  space  in  publications  of  larger  circulations  may  often 
be  approximated  by  figuring  it  at  one-third  of  a  cent  per  agate 
line  per  thousand  of  circulation.  Weekly  newspapers  of  from 
1,000  to  2,500  circulation  have  rates  ranging  from  15  to  20  cents 
per  inch,  and  of  from  2,500  to  4,000,  from  17  1/2  to  25  cents; 
sometimes  there  is  an  additional  charge  of  5  or  6  cents  per  inch 
for  composition.  Dailies  charge  all  the  way  from  one-seventh  of 
a  cent  to  one-fourth  of  a  cent  per  agate  line  per  thousand  circu- 
lation. Cost  of  illustration  and  other  special  features  is  borne 
by  the  advertiser. 

II.  Signs  and  Billboards.  —  These  forms  of  advertising  fit 
well  into  many  creamery  sales  campaigns.  They  do  not  per- 
mit of  the  presentation  of  much  argumentative  or  educational 
matter,  but  they  are  especially  effective  in  giving  emphasis  and 
repetition  to  trade-marks  or  trade  names.  When  attractively 
designed  and  printed  or  painted  and  well  placed,  they  catch 
the  eye  of  large  numbers.  Attractive  smaller  signs  placed  in 
retail  stores  where  creamery  products  are  for  sale  get  the 
attention  of  the  customer  right  at  the  time  that  he  is  in  a  buy- 
ing mood  and  are  valuable  for  that  reason.  Signs  and  bill- 
boards are  used  in  nearly  all  extensive  advertising  campaigns. 
The  preparation  of  attractive  show  cards  or  signs  is  quite  ex- 
pensive, however,  and  for  that  reason  they  are  not  always 
available  for  smaller  concerns.  This  objection  may  be  met  in 
part  by  purchasing  stock  cards  from  large  lithographing  and 
printing  houses  on  condition  of  the  right  to  exclusive  use  of 
them  in  a  limited  territory.  Show  cards  are  usually  accepted 
and  used  by  the  retail  dealer  handling  a  product  as  a  desirable 
cooperation  of  the  manufacturer  in  promoting  sales.  Billboard 


ADVERTISING   DAIRY   PRODUCTS  297 

space  is  usually  best  purchased  through  local  or  general  bill- 
board or  outdoor  advertising  companies  which  assume  full 
responsibility  for  painting  or  posting  and  upkeep.  Electric 
signs  are  very  attractive,  but  the  expense  of  erecting  and 
maintaining  them  is  large. 

III.  Street  Railway  Cards.  —  Where  city  trade  is  sought  for 
creamery  products,  the  street-car  card  is  valuable.    From  80  to 
90  per  cent  of  all  adults  in  a  city  ride  in  its  street  cars  and  they 
therefore  have  almost  a  perfect  circulation.     They  are  quite 
certain  to  be  seen  by  all  who  ride,  if  they  are  well  designed  and 
printed;  they  are  read  with  little  effort  at  a  time  when  there  is 
leisure  for  reading  them;  every  card  has  a  fair  chance  to  be  read, 
and  finally,  they  are  usually  the  last  advertisement  seen  by  a 
shopper  bound  cityward  on  a  buying  expedition.     They  are 
especially  valuable  for  emphasizing  and  repeating  the  trade 
name  and  the  main  selling  points  of  an  article.    Street-car  space 
is  usually  controlled  by  some  large  company  that  operates 
independently  of  the  street  railway  company.    Most  of  the  car 
space  in  the  United  States  and  Canada  is  controlled  by  a  single 
corporation.     Through  the  controlling  corporation  attractive 
cards  may  be  bought  at  a  moderate  price.    The  rates  are  fairly 
uniform  and  range  from  40  to  50  cents  per  n  X  21  card  per 
month. 

IV.  Circular  Letters  and  Mailing  Cards.  —  For  an  intimate 
presentation  of  a  product  to  prospective  customers,  circular 
letters  serve  a  purpose  that  no  other  medium  can  serve.    That 
is  especially  true  if  the  letters  are  well  written  and  skillfully 
printed  and  carefully  mailed.    They  are  not  suitable  for  general 
or  indiscriminate  circulation.    To  send  letters  to  all  the  house- 
wives of  a  trade  territory  would  be  too  expensive  for  most  prod- 
ucts.    But  when  through  newspaper  or  magazine  advertising, 
or  through  the  cooperation  of  retail  dealers  or  salesmen  or 
satisfied  customers,  special  lists  of  interested  persons  are  se- 
cured, they  may  be  circularized  to  advantage  and  at  reasonable 
cost.    General  advertising  brings  the  prospects,  while  the  special 
advertising  of  the  letter  goes  far  toward  convincing  them. 
Through    modern    letter   printing    and    addressing    machines 


298  MANAGEMENT  OF   DAIRY  PLANTS 

letters  that  have  every  semblance  of  being  specially  written  to 
each  individual  are  now  prepared  at  moderate  cost.  Letter 
printing  shops  are  found  in  most  cities.  Costs  will  vary  with 
the  quality  of  the  work,  approximating  2  or  3  cents  per  letter 
where  a  thousand  or  more  are  ordered,  not  including  postage. 
Cheap,  unattractive  circular  letters  are  rarely  a  good  invest- 
ment. Mailing  cards  printed  on  attractive  paper,  sometimes 
in  colors  and  with  illustrations,  are  useful  in  calling  attention  to 
special  propositions.  They  have  good  attention  value  and  may 
be  given  deep  interest  value  also. 

V.  Booklets.  —  These  serve  much  the  same  purpose  as  the 
circular  letter.    They  are  for  "  follow-up"  use  mainly  and  per- 
mit a  more  complete  presentation  of  the  merits  of  a  product 
than  is  possible  in  other  mediums.    A  booklet  for  a  creamery 
business  may  well  deal  with  the  processes  of  manufacture  in  a 
popular  way  with  emphasis  on  quality  of  materials,  food  values, 
and  care  in  making  and  handling  the  product.     Illustrations 
are  of  especial  value  in  a  booklet,  especially  those  that  tell  a 
story  that  is  to  the  point.    Booklets  are  circulated  in  much  the 
same  way  as  letters  and  to  much  the  same  lists.    They  may 
also  be  distributed  in  the  package  or  through  retail  dealers. 
Costs  vary  greatly  with  the  character  of  the  book  and  its 
make-up,  but  there  is  possible  a  booklet  for  every  business,  well 
within  the  limits  of  its  advertising  appropriation. 

VI,  Novelties.  —  This  heading  includes  many  special  forms 
of  advertising,  such  as  calenders,  blotters,  special  display  cards, 
gift  articles,  and  the  like.    Their  value  varies.    The  calendar,  if 
attractive  enough,  may  prove  to  be  an  all-the-year  reminder  in 
office  or  home.    Blotters,  if  sent  regularly  once  or  twice  a  month 
and  each  attractively  printed  with  a  newsy  message  of  business 
interest,  are  a  good  reminder  to  have  on  a  customer's  desk. 
Gift  novelties,  like  penholders,  pencils,  fans,  drinking  cups, 
canes,  etc.,  carrying  the  business  name  of  the  donor,  have 
some  value,  but  not  always  a  value  equal  to  their  cost.    They 
are  usually  distributed  under  circumstances  that  make  the 
distribution  wasteful.     If  novelty  advertising  is  purchased,  it 
ought  to  be  carefully  purchased  and  as  carefully  distributed. 


ADVERTISING   DAIRY   PRODUCTS  299 

VII.  Exhibits  and  Demonstrations.  —  Food  products  are 
often  excellently  advertised  through  exhibits  and  demonstra- 
tions, particularly  at  pure  food  shows  and  in  retail  grocery 
stores.    Such  advertising,  however,  must  always  be  linked  up 
with  other  advertising  and  it  is  quite  likely  to  be  expensive. 
Smaller  creameries  are  not  likely  to  find  it  profitable  to  adopt 
this  medium,  except  when  special  circumstances  favor  it.    Ex- 
hibits and  demonstrations  take  much  time  and  usually  require 
special  men  and  women  employees  to  set  them  up  and  conduct 
them. 

VIII.  Programs,  Directories,  etc.  —  Programs  and  direct- 
ory advertising  is  of  uncertain  value.  There  ought  to  be  a  special 
reason  for  buying  advertising  space  in  such  publications;  most 
frequently  that  reason  is  "policy."    However,  there  is  likely  to 
be  profit  in  theater  program  advertising  of  ice  cream,  which  is 
usually  in  demand  at  the  close  of  a  performance,  and  perhaps 
of  other  dairy  products.    Theater  curtains  have  similar  value  — 
probably  even  more,  because  they  are  more  certain  to  get  atten- 
tion. 

IX.  The  Creamery  Itself.  —  Although  the  creamery  itself  is 
primarily  a  manufacturing  plant,  it  is  also  its  own  best  adver- 
tisement.   If  it  is  well  located,  attractively  built,  neatly  kept,  it 
will  get  attention  from  many  passers-by,  arouse  their  interest, 
and  help  to  convince  them  of  the  merit  of  the  creamery's  prod- 
ucts.   As  far  as  practicable,  a  creamery  should  keep  a  welcome 
sign  out  and  even  hold  open  house  from  time  to  time  when 
visitors  will  be  given  special  attention  and  perhaps  a  sampling 
of  some  new  product  or  some  old  product  made  differently. 
Also,  the  manager  of  the  plant  will  not  find  it  amiss  if  on  proper 
occasion  he  discusses  pure  food,  or  conservation,  from  his  busi- 
ness standpoint,  before  public  or  semi-public  gatherings. 

PLANNING  AND  WRITING  THE  ADVERTISEMENT 

Because  three-fourths  of  the  advertising  prepared  for  a 
creamery  business  is  likely. to  be  prepared  for  a  newspaper  or 
other  publication,  the  planning  and  writing  of  advertising  will 


300  MANAGEMENT   OF   DAIRY  PLANTS 

be  discussed  from  that  standpoint.  However,  what  is  said 
specifically  from  that  standpoint  may  be  applied  generally  to 
other  forms  of  advertising. 

I.  Fundamental  Considerations.  —  An  advertisement,  if  it 
is  a  real  advertisement,  is  written  to  secure  favorable  action 
upon  some  proposition  of  the  advertiser,  usually  to  induce  a  pur- 
chase —  to  sell  something.     It  is  essential  that  this  be  always 
kept  in  mind  by  the  writer  of  advertisements. 

It  follows,  then,  that  the  writer  of  an  advertisement  must 
have  a  definite  objective,  the  selling  of  a  commodity,  and  a 
thorough  understanding  of  that  objective  or  commodity;  also, 
he  must  understand  how  men  and  women  may  best  be  appealed 
to  and  influenced,  and  finally,  he  needs  to  know  something 
about  the  advertising  tools  by  which  they  may  be  influenced. 

II.  Understand  the  Commodity.  —  It  may  seem  superfluous 
to  advise  a  creamery  man  to  understand  his  product  thoroughly 
before  he  undertakes  to  write  an  advertisement  to  sell  it,  yet 
this  is  true :  It  is  one  thing  for  him  to  understand  it  for  himself 
and  another  to  understand  it  so  that  he  may  make  its  merits 
clear  to  others.    We  often  know  things  that  we  cannot  readily 
explain.    The  writer  of  butter  advertising,  for  example,  should 
think  over  the  merits  of  his  butter,  discover  how  and  why  it  is 
different  from  and  better  than  the  common  run  of  butter,  and 
then  write  out  brief,  pointed  statements  covering  these  facts. 
Then  he  will  know  his  butter  definitely,  not  indefinitely;  he  will 
have  a  clear,  not  a  hazy,  understanding  of  it;  he  will  have  his 
talking  and  selling  points  —  the  material  out  of  which  an  adver- 
tisement may  be  " built." 

III.  Understand  the  Buying  Public.  —  A  good  salesman 
never  approaches  a  prospective  customer  without  first  learning 
all  he  can  about  him.    A  good  "ad"  writer  likewise  seeks  to 
know  as  much  as  he  can  about  the  people  to  whom  his  adver- 
tisement is  addressed,  for  his  is  a  selling  task  also.    What  are 
their  likes  and  dislikes?    What  are  their  circumstances,  finan- 
cially and  otherwise?    What  emphasis  do  they  put  on  quality 
or  on  price?     What  is  their  interest  in  considerations  of  food 
and  health?    Through  these  and  many  other  questions  create  a 


ADVERTISING   DAIRY  PRODUCTS  301 

picture  in  the  mind's  eye  of  the  people  for  whom  the  advertise- 
ment is  intended  and  ability  to  reach  them  will  be  increased.  A 
good  deal  of  psychology  is  involved  in  this  step.  In  fact,  ad- 
vertising, like  other  kinds  of  salesmanship,  has  much  to  do  with 
psychology  and  successful  salesmen  are  good  psychologists, 
either  consciously  or  unconsciously. 

IV.  Essential  Steps  in  Advertising  Appeal.  —  A  successful 
advertisement  accomplishes  four  things  in  reaching  and  influenc- 
ing the  buying  public:  It  gets  attention;  it  arouses  interest;  it 
convinces,  and  it  secures  action.  In  other  words,  it  makes 
people  look,  like,  learn,  and  buy.  The  ad  writer  needs  to  keep 
these  essentials  in  mind  when  he  plans  and  writes  his  advertise- 
ment and  to  strive  definitely  to  make  it  effective  with  respect 
to  all  of  them. 

Attention,  depends  (a)  upon  the  extent  to  which  counter- 
attractions  are  eliminated  or  lessened  —  the  less  other  advertis- 
ing competes  with  an  advertisement  and  the  more  it  is  set  off 
by  itself,  the  more  likely  it  is  to  get  attention;  (b)  upon  con- 
trast, which  is  secured  by  making  an  advertisement  different 
from  those  around  it  —  most  ad  writers  learn  what  other  adver- 
tisers are  doing  and  then  do  something  else;  (c)  upon  the  impres- 
sion it  makes  on  the  eye  and  then  on  the  feelings;  (d)  upon  the 
readiness  with  which  it  is  understood  in  a  single  glance. 

Interest,  which  must  develop  out  of  attention  if  the  adver- 
tisement is  to  do  more  than  merely  catch  the  eye  for  an  instant, 
depends  (a)  upon  the  appearance  of  the  advertisement  and  its 
surroundings  —  it  must  be  inviting  to  the  reader;  (b)  upon  the 
promptness  with  which  it  may  be  understood  —  the  reader 
should  be  able  to  gather  quickly  its  most  important  message; 
(c)  upon  the  way  in  which  the  reader  is  set  to  thinking  about 
the  things  advertised  —  there -must  be  a  quick  suggestion 
that  the  advertisement  is  worth  his  while  for  some  reason  or 
other. 

Conviction  depends  upon  successful  appeal  to  reason  or  to 
desire. 

Action  is  secured  through  direct  or  indirect  suggestion  or 
demand. 


3O2  MANAGEMENT   OF   DAIRY   PLANTS 

V.  The  Materials  and  Tools  of  Advertising.  —  To  "build" 
an  advertisement  and  give  it  these  four  essentials  qualities,  the 
ad  writer  uses  space,  type  and  borders,  illustrations  and  lan- 
guage. They  may  be  called  the  materials  and  tools  of  adver- 
tising. 

All  four  "materials  and  tools"  are  employed  as  follows  to 
give  attention  value  to  an  advertisement: 

Space,  i.  By  using  as  large  space  as  the  appropriation  per- 
mits. Large  space  gets  attention  because  it  is  large;  it  lessens 
the  counter-attraction  of  other  advertisements;  it  permits  of 
larger  headlines,  display  type  and  illustrations,  and  better 
typographical  effects.  Experience  shows  that  it  is  more  prof- 
itable to  use  a  given  amount  of  space  for  a  few  large  advertise- 
ments than  many  small  ones.  However,  the  value  of  frequency 
must  not  be  overlooked. 

2.  By  securing  space  in  the  best  positions.    This  is  more  im- 
portant with  smaller  advertisements.    Nearness  to  live  reading 
matter  of  the  right  kind  is  essential;  space  in  the  upper  half  of  a 
page  is  usually  better  than  in  the  lower  half. 

3.  By  varying  the  form  of  space  used  to  secure  contrast. 
When  most  advertisements  are  square  or  nearly  square,  the 
long,  single  column  advertisement  has  marked  attention  value. 
An  oval  or  circle  effect  likewise  secures  contrast. 

4.  By  providing  plenty  of  white  space  within  the  advertise- 
ment itself;  an  open  arrangement  is  desirable,  and  a  crowded 
space  undesirable. 

5.  By  putting  important  head  or  key  lines  into  type  that  is 
large  and  which  is  easily  read  (display).    All  capitals  are  not  as 
legible  as  capitals  and  small  letters   (caps  and  lower  case). 
Headline  type  measuring  i/io  to  1/20  of  the  height  of  the  ad- 
vertisement is  considered  effective.    Avoid  the  use  of  too  many 
lines  of  large  type  (over  display),  for  all  emphasis  is  no  empha- 
sis, but  merely  confusion. 

6.  By  selecting  borders  that  catch  the  eye  by  setting  off  the 
advertisement  and  making  it  different,  but  which  do  not  attract 
too  much  attention  to  themselves.     Usually  large  advertisers 
design  special  borders  and  have  them  engraved. 


ADVERTISING   DAIRY   PRODUCTS  303 

7.  By  using  illustrations  that  are  different  and  which  may  be 
understood  readily  and  which  print  clearly.    Illustrations  have 
large  attention  value. 

8.  By  introducing  unusual  arrangements  and  forms  of  type 
and   illustrations,   ovals,   circles,    triangles,    etc.     But   retain 
simplicity. 

Interest  value  is  given  to  an  advertisement  by  the  skillful  use 
of  type  and  border,  illustrations  and  language,  as  follows: 

Type  and  Borders,  i.  By  making  the  typography  (use  of 
type  and  borders)  pleasing.  Type  and  border  should  harmon- 
ize with  each  other  and  type  should  harmonize  with  the  subject- 
matter  of  the  advertisement  —  for  food  products  suggesting 
daintiness  and  purity.  Adhere  to  simplicity,  avoid  overcrowd- 
ing and  involved  designs  and  backgrounds.  Keep  plenty  of 
white  space  within  the  ad.  Maintain  balance  and  symmetry. 
In  short,  make  the  appearance  of  the  advertisement  inviting  to 
the  eye  and  interest  will  follow. 

2.  By  using  legible  type  that  the  eye  may  read  with  least 
effort.    Interest  will  not  develop  when  reading  is  difficult. 

3.  By  using  illustrations  which  are  clear,  which  are  in  good 
taste,  which  really  illustrate  and  which  present  a  story  that  is 
readily  understood.    Let  them  show  processes  and  portray  ar- 
guments and  stir  human  desires.    Such  illustrations  give  great 
interest  value,  save  many  words,  and  furnish  short  cuts  to 
understanding. 

4.  By  use  of  headlines  that  carry  the  important,  vital  fact  of 
the  advertisement's  story  —  its  best  news.     Headlines  are  first 
to  be  read;  their  impression  must  be  favorable;  they  must 
deepen  attention  into  interest.    Headlines  must  be  brief,  lively, 
interesting,  not  more  than  four  or  five  words,  and  be  taken  in 
readily  by  the  eye  in  a  single  glance. 

5.  By  use  of  appeals  and  arguments  in  the  body  of  the 
advertisement  that  are  clear  cut,  straight  to  the  point,  and 
full   of    news  about   the  product,   making   the   reader   think 
favorably  of  it.    But  what  is  written  should  be  as  brief  as 
possible. 

6.  By  making  the  advertisements  timely  and  thus  linking 


304  MANAGEMENT   OF   DAIRY   PLANTS 

them  up  with  other  things  already  in  the  popular  mind  or  in 
popular  favor. 

Words.  —  Conviction  and  action  are  secured  through  the  use 
of  words  almost  wholly: 

1.  By  carefully  planned  appeal  to  the  reason.     The  argu- 
ments in  favor  of  the  product  should  be  carefully  listed  and 
arranged  and  then  expressed  forcibly  and  briefly,  keeping  in 
mind  the  reader,  his  way  of  thinking  and  his  motives  of  action0 

2.  By  skillful  play  upon  desires  and  feelings  through  lan- 
guage,   suggesting    appetizing    tastes,    pleasing    flavors,    and 
healthful  effects  of  good  products.    The  reading  of  the  adver- 
tisement should  leave  the  readers  with  a  desire  for  the  product 
and  an  inclination  to  go  buy. 

3.  By  definitely  suggesting  or  commanding  action.     After 
interest  and  conviction  have  been  secured,  the  ad  writer  may  in 
so  many  words  say  do  this  or  do  that. 

Type  is  made  in  an  endless  number  of  styles,  but  most  com- 
posing rooms  have  only  a  limited  variety.  This  is  no  handicap, 
however,  providing  the  few  are  desirable  from  the  standpoint  of 
good  taste,  legibility,  and  attractiveness.  Type  sizes  vary 
according  to  the  "  point "  system,  a  point  being  equivalent  to 
one  seventy-second  part  of  an  inch  (approximately).  The  sizes 
are  named  according  to  the  measurement  of  points  between  the 
topmost  part  of  a  capital  letter  and  the  lowest  part  of  such  a 
letter  as  "g,"  for  example.  If  that  measurement  is  12  points, 
the  type  size  is  "  12  point."  The  smallest  size  in  common  use  is 
6  point;  the  largest,  72  point.  Type  lines  are  measured  on  the 
same  basis,  but  with  the  pica,  which  equals  12  points,  as  the 
unit.  Newspaper  columns  commonly  measure  13  picas  wide, 
although  at  present  there  is  a  trend  toward  a  standard  12  1/2 
pica  column.  Type  is  said  to  be  " leaded"  when  thin  metal 
strips  (leads)  are  inserted  between  lines  to  make  more  white 
space  and  increase  legibility.  In  the  body  matter  of  advertis- 
ing, 14  point,  12  point,  10  point,  8  point,  and  6  point  are  most 
commonly  used,  especially  the  first  three.  On  the  average, 
matter  set  in  14  point  will  run  about  10  words  to  the  square 
inch,  set  solid  (without  leads);  12  point,  solid,  14  words  and 


ADVERTISING   DAIRY   PRODUCTS  305 

leaded,  n  words;  10  point,  solid,  20  words,  and  leaded,  16 
words.  It  is  convenient  to  have  in  a  scrapbook  samples  of  the 
various  sizes  and  styles  of  type  that  are  available  in  the  news- 
paper composing  rooms  that  handle  the  advertising  prepared. 

Illustrations  for  newspaper  use  are  of  two  kinds,  half  tones 
and  zinc  etchings,  both  made  by  photographic  processes.  Half 
tones  are  most  often  made  from  photographs,  from  water-color 
drawings  (wash  drawings)  in  black,  brown,  or  white.  They  may 
also  be  made  from  oil  paintings  and  direct  from  smaller  objects 
themselves.  A  half  tone  may  be  identified  by  the  many  small 
dots  and  squares  which  change  the  solid  black  or  white  surfaces 
into  "tones  "  of  black  or  white.  These  dots  are  introduced  in 
the  engraving  process  by  photographing  the  original  through 
a  screen  of  fine  lines,  ranging  from  65  per  inch  to  200  per  inch. 
The  screen  is  varied  for  different  printing  uses,  and  is  coarse  for 
rough  uneven  paper  and  fine  for  smoothly  surfaced  paper. 
Half  tones  are  designated  according  to  the  screen  used;  for 
printing  on  newspapers  printed  on  an  ordinary  print  paper 
from  stereotyped  plates,  65  or  sometimes  80  line  or  screen  is 
most  satisfactory;  for  newspapers  printed  direct  from  type  and 
engravings  on  smoother  paper,  as  fine  as  100  line  may  be  used; 
for  booklets  and  catalogs  as  fine  as  120  or  133  line  may  be  used. 
Photographic  copy  for  half  tones  should  be  clear  and  sharp. 
An  engraving  may  be  made  larger  or  smaller  than  the  original 
copy,  to  fit  the  advertising  space  desired. 

Zinc  etchings  are  made  from  pen  and  ink  line  drawings.  They 
contain  no  dots,  not  being  made  through  a  screen.  They  will 
print  well  on  any  kind  of  paper  and  in  any  kind  of  a  press.  They 
present  only  one  difficulty,  the  expense  of  getting  good  original 
drawings. 

Language  is  the  main  reliance  of  advertising  and  the  ad 
writer  must  know  both  what  to  say  and  how  to  say  it.  To 
know  what  to  say  he  needs  to  understand  his  product;  to  know 
how  to  say  it  he  needs  to  know  the  people  to  whom  he  is  writing 
his  advertisement  and  how  words  may  be  used  to  interest  and 
convince  them. 

What  to  say  will  depend  a  good  deal  upon  the  kind  of  an 


J06  MANAGEMENT   OF   DAIRY   PLANTS 

appeal  that  is  to  be  made  in  the  advertisement,  whether  to  the 
reason  ("reason  why  "  advertisement)  or  to  the  feelings  ("hu- 
man interest  "  advertisement).  For  a  "reason  why  "  advertise- 
ment, hard  facts  as  to  quality,  food  values,  process  of  manufac- 
ture, price,  and  the  like  are  needed.  For  the  "human  interest  " 
advertisement,  such  features  of  the  product  as  its  pleasing  taste, 
its  cleanliness,  its  healthfulness,  its  sweet  odors,  its  appetizing 
appearance,  its  agreeable  associations  in  use,  and  so  on  make 
the  best  material.  For  most  advertisements  some  of  each  kind 
of  facts  or  material  will  be  required,  for  most  advertisements 
combine  " reason  why"  and  human  interest.  Always  the 
limits  of  the  space  available  in  advertising  must  be  kept  in  mind 
and  the  facts  or  material  subjected  to  what  the  newspaper  man 
calls  the  "boiling  down"  process  to  eliminate  everything  that 
is  not  absolutely  essential  and  helpful. 

How  to  present  the  talking  points  will  depend  in  a  measure 
upon  the  kind  of  people  who  are  to  be  reached  by  the  advertise- 
ment. What  is  written  for  women  must  be  set  forth  in  terms 
that  they  best  understand  and  which  catch  their  interest;  it 
needs  to  be  expressed  in  words  that  are  familiar  in  women's 
activities.  Likewise,  what  is  written  for  men,  or  for  rural 
people  or  for  city  people,  needs  to  be  expressed  in  terms  that 
suit.  But  certain  rules  apply  to  all  advertisement  writings: 
Be  brief,  because  the  reader  hasn't  time  for  long  discussion  and 
the  advertisement  hasn't  space  for  it.  Be  clear,  because  what  is 
written  will  be  read  more  or  less  hurriedly  and  must  be  corre- 
spondingly easy  to  understand.  Be  simple;  avoid  big  words 
and  high-sounding  phrases;  plain,  everyday  words  are  best; 
steer  clear  of  the  over-use  of  adjectives.  Be  forceful  when  it  is 
essential  to  hammer  home  facts;  straight  talk  from  the  shoulder 
is  most  effective.  Be  interesting;  put  life  into  every  sentence. 
Make  sentences  short  and  paragraphs  likewise;  avoid  every 
impression  of  long-windedness.  Be  fair  and  moderate  in  state- 
ment; do  not  claim  too  much,  for  people  are  suspicious  of 
wholesale  claims.  Be  honest;  that  is  always  the  best  policy. 

VI.  Writing  the  Advertisement.  —  Every  writer  of  adver- 
tisement works  out  his  own  plan  of  procedure  sooner  or  later, 


ADVERTISING   DAIRY   PRODUCTS  307 

so  what  is  offered  here  is  merely  suggestive.    However,  it  is  sub- 
stantially the  plan  followed  by  one  successful  ad  writer. 

1.  Fix  a  purpose  for  the  advertisement.    Don't  set  out  with 
merely  a  hazy  notion  of  what  is  to  be  accomplished;  have  a 
clear-cut  understanding  on  that  score,  or  else  the  advertisement 
is  not  likely  to  interest  or  convince  any  one.    Whether  it  is  to 
sell  something  at  once,  or  create  good  will  for  a  product,  or  to 
educate  the  public  to  its  merits,  or  something  else,  determine 
the  purpose  definitely. 

2.  Determine  the  mode  of  appeal.    Settle  whether  it  is  to  be 
to  reason,  to  human  interest  or  to  both.    Your  ad  writing  will 
be  done  more  or  less  aimlessly  unless  you  take  this  step. 

3.  Select  your  talking  points.    Make  a  list  of  all  the  points 
that  may  be  urged  in  making  your  appeal.    Study  them  care- 
fully to  make  sure  that  they  are  worth  while;  cut  out  all  that  are 
weak;  combine  some;  rearrange  them  in  order,  according  to 
interest  or  importance,  or  logical  sequence. 

4.  Determine  how  much  space  is  to  be  used.    Unless  the  ad 
writer  knows  whether  he  is  to  have  6  inches  double  column 
space  or  5  inches  single  column  or  a  half  page,  he  cannot  prepare 
his  copy  correctly. 

5.  Outline  this  space  on  paper  and  locate  the  typographical 
features  of  the  advertisement.    If  an  illustration  is  to  be  used, 
sketch  its  exact  outlines  in  the  available  space,  or  better,  paste  a 
proof  of  it  on  the  location  that  is  best.    Sketch  out  a  location  for 
the  trade-mark  or  trade  name.    Determine  how  much  space  the 
headline  should  occupy  and  where.     Then  outline  the  space 
that  the  body  or  text  of  the  advertisement  is  to  occupy  and 
estimate  how  many  words  of  matter  can  be  put  into  that  space. 
Your  complete  sketch  should  give  you  a  good  idea  of  what  your 
advertisement  will  look  like  in  print. 

6.  Write  the  copy  to  fit  the  space.    Sometimes  the  headlines 
may  be  written  first,  sometimes  last.     Choose  the  newsiest  or 
most  important  feature  of  your  talking  points,  or  the  feature 
with  most  attention-getting  power,  for  your  key  line.    Put  it 
into  the  fewest  possible  number  of  words.    Write  it  and  rewrite 
it  to  make  sure  that  it  is  effective.    Write  the  text  of  the  adver- 


308  MANAGEMENT    OF  DAIRY  PLANTS 

tisement  from  the  list  of  talking  points  prepared  earlier.  Then 
study  the  result  carefully,  make  careful  criticisms,  estimate  its 
probable  effect  on  the  reader,  and  then  rewrite.  Two  or  three 
rewritings  are  none  too  many  for  a  worth-while  advertisement. 
This  writing  and  rewriting  should,  of  course,  be  done  on  sepa- 
rate sheets  of  paper;  the  final  result  may  be  numbered  to  indi- 
cate its  location  in  the  outline  of  the  advertisement. 

7.  Secure  the  cooperation  of  the  printer  to  get  into  type  the 
kind  of  an  advertisement  you  have  planned.  The  printer  can 
help  make  or  mar  the  ad  writer's  work.  Arrange  for  proofs  so 
that  you  may  be  assured  that  the  advertisement  you  planned  is 
really  worked  out  in  type.  Better  pay  extra  for  the  privilege 
of  tearing  down  and  rebuilding  than  to  have  an  unsatisfactory 
advertisement  go  into  circulation. 

VII.  An  Advertising  Scrapbook.  —  Such  a  book,  filled  with 
clippings  of  advertising  material,  will  prove  invaluable  to  the 
ad  writer.  It  should  contain  examples  of  different  uses  of 
typography  to  get  attention  and  interest,  of  different  methods 
of  using  illustrations,  of  effective  key  lines,  of  well-written 
arguments  or  descriptions  or  other  appeals,  of  various  type 
faces  and  type  sizes,  short  articles  bearing  on  advertising, 
clipped  from  trade  or  advertising  journals,  and  such  other 
matter  as  may  prove  useful. 


CHAPTER  XXII 
BUSINESS  CORRESPONDENCE 

BUSINESS  is  annually  transacted  between  firms  and  indi- 
viduals who  have  never  come  in  personal  contact  with  each 
other.  They  have  become  acquainted  and  started  a  business 
relation  with  each  other  entirely  through  correspondence.  A 
business  house  writes  frequently  to  its  customers  and  may 
possibly  write  from  twenty  to  a  hundred  letters  for  each  time 
its  representatives  have  the  opportunity  of  calling  in  person. 
It  is  therefore  evident  that  the  letter  is  one  of  the  big  factors  in 
business.  It  is  of  as  great  importance,  or  even  greater,  that  a 
business  letter  be  considered  as  a  credit  to  the  institution  where 
it  originated  as  that  a  call  be  made  by  the  proper  representative. 
The  latter  will  make  only  a  short  call  and  should  the  impression 
he  made  be  unfavorable,  the  effect  therefrom  may  gradually  die 
away  and  be  forgotten.  The  letter,  however,  becomes  the 
property  of  the  one  to  whom  it  was  addressed  and  if  it  creates  an 
unfavorable  impression  it  reflects  on  the  firm  even  more  force- 
fully and  will  continue  to  convey  the  same  impression  at  least 
as  long  as  it  remains  in  the  possession  of  its  recipient.  Such  a 
letter  may  not  merely  prevent  an  immediate  sale,  but  sales  for 
a  period  of  years. 

A.  THE  APPEARANCE  OF  LETTER 

I.  Stationery.  —  The  stationery  selected  by  a  firm  should  at 
least  not  be  out  of  harmony  with  the  business  of  the  company. 
A  dairy  firm  should  select  paper  of  good  quality.  It  cannot  any 
more  afford  to  write  letters  on  poor,  cheap-appearing  stationery 
than  it  can  afford  to  send  its  salesman  out  in  cheap  and  shabby 
clothing, 

309 


310  MANAGEMENT   OF   DAIRY  PLANTS 

The  color  of  stationery  should  be  given  attention.  A  white 
color  is  always  safe;  other  colors  should  be  selected  with  cau- 
tion. A  dealer  in  whole  milk,  cream,  or  butter  would  prefer 
a  color  significant  of  a  product  that  is  rich  and  of  high  quality. 
A  cream  color  might  be  a  very  suggestive  color  for  a  dairyman 
to  select.  However,  a  cream  color  should  not  be  confused  with 
an  orange  color  or  even  a  lemon  color;  it  should  be  more  deli- 
cate. Unless  a  satisfactory  color  can  be  obtained  it  would  seem 
safer  to  stay  by  the  white. 

Business  stationery  should  bear  the  name  and  full  address  of 
the  firm  or  individual.  Other  information  which  may  properly 
be  used  in  a  letterhead  includes  the  names  of  firm  officers, 
telephone  numbers,  cable  address,  and  capital  stock  of  the  firm. 
Manufacturers  often  add  an  illustration  of  the  plant.  This  is 
usually  for  the  purpose  of  impressing  the  recipient  with  the 
magnitude  of  their  business  and  thereby  also  make  the  impres- 
sion of  reliability.  A  building  should  never  be  used  for  the 
letterhead  by  a  firm  occupying  only  a  small  part  thereof  unless 
the  building  bears  the  name  of  the  firm  using  it.  The  space  on 
side  margins  of  the  paper  should  not  be  used  for  printed  matter. 
Engraved  or  lithographic  stationery  is  to  be  preferred  to  printed. 
But  if  printed  stationery  is  used  it  should  be  of  high  class.  A 
letterhead  should  never  be  used  for  second  sheet,  but  a  blank 
sheet  of  the  same  size  and  of  the  same  paper  stock  as  the  first 
sheet. 

II.  Color  of  Ink.  —  Black  is  the  safest  color  to  use;  however, 
other  colors  such  as  blue,  green,  etc.,  are  used  more  or  less. 
Blue  was  formerly  much  favored  for  typewritten  letters,  but 
black  ink  is  gradually  taking  the  place  of  all  others.    Various 
colored  inks,  even  red,  have  been  used  by  writers  of  letters  for 
signatures,  but  also  for  that  purpose  the  black  ink  is  most 
satisfactory. 

III.  The    Envelope.  —  The  envelope  should  be  of   same 
paper  stock  as  the  letter  paper.     It  should  have  the  return 
address  in  the  upper  left-hand  corner.    The  address  should  be 
plainly  and  neatly  written.     This  is  of  particular  importance 
when  the  letter  is  written  to  an  individual  or  to  a  smaller  firm 


BUSINESS   CORRESPONDENCE  31! 

where  the  owner  or  manager  opens  the  letters  himself.  The 
size  of  the  regular  commercial  envelope  is  about  3  3/4  inches  X 
6  1/2  inches. 

The  open-faced  envelope  is  used  quite  extensively  for  mailing 
bills,  thereby  saving  the  labor  of  addressing  the  envelope.  It 
may  be  very  useful  for  such  purposes  even  though  many  are 
opposed  to  receiving  a  letter,  the  outside  appearance  of  which 
indicates  that  a  bill  is  contained  within.  This  is  particularly 
true  in  reference  to  individuals  and  it  is  the  safer  policy  not  to 
adopt  the  open-faced  envelope  for  other  purposes  than  for 
mailing  statements  and  bills  to  firms.  The  open-faced  en- 
velope is  not  well  suited  for  business  correspondence,  as  it 
necessitates  the  folding  of  the  paper  in  a  very  inconvenient 
and  inattractive  way.  Moreover,  as  the  outside  appearance  is 
against  such  a  letter,  it  will  not  receive  as  hearty  a  welcome  as 
will  a  letter  appearing  in  more  attractive  clothing. 

IV.  Proper  Proportioning  of  Letter  on  Sheet.  —  The  letter 
should  be  so  written  that  it  is  properly  proportioned  on  the  sheet; 
that  is,  the  white  margin  at  the  bottom  should  be  practically 
the  same  as  the  white  margin  at  the  top  or  a  little  wider.    Like- 
wise, the  margin  at  the  two  sides  of  the  letter  should  be  the  same 
and  the  right-hand  margin  should  be  made  as  regular  as  pos- 
sible.   The  body  of  the  letter  should  also  be  divided  into  short 
paragraphs,  as  that  makes  the  letter  more  readable  and  more 
pleasing  to  the  eye. 

V.  Folding  the  Letter.  —  In  folding  the  letter  two  folds  are 
considered,  the  long  and  the  short  fold,  to  conform  with  the 
size  of  envelope  used.    The  long  fold  is  used  for  the  long  en- 
velope and  the  short  fold  for  the  short  or  regular  size  com- 
mercial envelope.    When  using  the  long  fold  the  sheet  is  folded 
twice,  the  upper  part  of  the  letter  overlapping;  the  letter  thus 
folded  will  open  most  conveniently  to  the  one  who  reads  it. 
When  adopting  the  short  fold  the  first  fold  is  made  from  the 
bottom  of  the  sheet  leaving  a  top  margin  of  about  one  inch. 
This  is  for  the  purpose  of  having  the  name  of  the  firm  in  plain 
view  of  the  reader  before  the  sheet  has  been  fully  unfolded,  but 
it  also  makes  the  unfolding  of  the  letter  easier  to  the  one  who 


312  MANAGEMENT   OF  DAIRY  PLANTS 

opens  the  mail.    The  second  and  third  folds  should  be  made 
about  equal  and  should  be  neatly  done. 

VI.  Letter  Mailed  to  the  Consumer.  —  A  dairy  carrying  on 
a  retail  business  will  often  send  letters  to  individual  homes  in  the 
city.  Such  letters  may  be  sent  merely  for  advertising  purposes, 
but  the  lady  of  the  house  will  usually  receive  them  and  the  ap- 
pearance of  the  letter  should  therefore  be  such  that  it  will  appeal 
to  her.  A  letter  written  on  business  stationery  would  not  re- 
ceive her  attention.  If  such  letters  are  written  on  high-grade 
stationery  similar  to  that  used  for  social  correspondence  they 
will  be  more  appreciated.  Such  stationery  may  be  absolutely 
plain.  If  desirable  to  have  the  return  address  on  the  envelope 
then  it  may  be  placed  in  the  upper  left-hand  corner  of  the  front 
or  preferably  on  the  back  of  the  envelope.  The  type  should  be 
small  and  the  printing  most  neatly  done. 

B.  PARTS  OF  A  LETTER 

A  business  letter  is  made  up  of  the  following  parts: 

The  Heading. 

The  Introduction. 

The  Salutation. 

The  Body  of  the  Letter. 

The  Complimentary  Close. 

The  Signature. 

I.  The  Heading.  —  The  heading  is  first  to  be  considered 
and  includes  the  name  of  the  place  from  which  the  letter  was 
sent  and  the  date  of  writing.'    If  necessary  the  street  and  room 
number  may  also  be  given.    The  heading  is  placed  at  the  upper 
right-hand  corner  immediately  below  the  letterhead.     Some 
place  it  nearer  the  center.    In  a  social  letter  it  is  often  reserved 
until  last. 

II.  The  Introduction.  —  The  introduction  or  inside  address 
is  composed  of  the  name  of  the  person  or  firm  to  whom  the 
letter  is  written,  street  number,  city  and  state.    It  is  placed  at 
the  beginning  of  the  communication  or,  if  in  the  social  form,  at 


BUSINESS   CORRESPONDENCE  313 

the  lower  left-hand  corner  of  the  sheet  and  then  includes  only 
name  and  address.  The  latter  style  may  be  considered  as  the 
stronger.  The  reader  is  able  to  get  into  the  subject-matter  of 
the  letter  without  any  loss  of  time,  which  appeals  to  the  busy 
man. 

A  business  letter  intended  for  a  business  firm  should  always 
be  addressed  to  the  firm  itself  and  not  to  an  individual  member 
or  to  some  employee  of  the  firm.  When  it  is  addressed  to  an 
individual  it  becomes  a  personal  letter  and  if  the  person  to 
whom  it  is  addressed  is  absent  for  some  time  the  letter  may 
be  left  until  he  returns,  whereas  it  would  receive  prompt  atten- 
tion if  addressed  to  the  firm.  If  the  writer  desires  that  his  let- 
ter be  brought  to  the  attention  of  some  certain  person  of  the 
firm,  then  the  inside  address  may  call  for  the  attention  of  that 
particular  person  as  follows: 

The  -    -  Creamery  Co., 
720  -    -  Ave. 
Attention  of  Mr.  J.  C.  Smith. 

III.  The  Salutation.  —  The  salutation  depends  much  upon 
the  subject-matter  of  the  letter,  the  rank  of  the  person  to  whom 
it  is  written,  and  the  acquaintance  of  the  parties  concerned.    If 
writing  to  individuals,  a  business  letter  starts  with  "Dear  Sir  " 
or  "Dear  Madam  "  and  with  "Gentlemen"  if  writing  to  a  firm. 
The  form,  "My  Dear  Sir,"  is  often  used  in  business  and  may  be 
considered  very  good,  however,  the  former  is  the  safer  to  use. 
All  words  in  the  salutation  may  be  capitalized.    Some  writers, 
however,   capitalize  only  the  first  word.     The  salutation  is 
followed  by  a  colon. 

The  more  personal  form  of  salutation,  as  in  "Mr.  Brown  "  or 
"Dear  Mr.  Brown,"  appeals  to  many  people.  It  makes  the 
reader  of  the  letter  feel  as  if  there  is  a  more  intimate  relation 
between  him  and  the  writer  and  that  form  is  often  preferable, 
especially  so  if  the  two  persons  are  acquainted. 

IV.  The  Body  of  the  Letter.  —  The  body  of  the  letter  may 
begin  upon  the  same  line  as  the  salutation  or,  as  is  most  fre- 
quently done,  on  the  next  line  below.    The  body  of  the  letter  is 


314  MANAGEMENT  OF  DAIRY  PLANTS 

that  part  which  contains  the  real  thought  and  substance.  It  is 
only  that  business  letter  which  is  full  of  good  thoughts  and  ideas 
that  is  worth  while  writing.  The  other  kind  may  just  as  well 
not  be  written,  for  it  gains  no  friends,  creates  no  new  business, 
and  may  even  be  a  business  loser.  It  is  well,  especially  for  the 
beginner,  to  study  each  letter  before  delivering  it  to  the  mail. 
Single  out  the  strong  parts  of  the  letter  as  well  as  the  weak 
parts  and  the  entirely  superfluous  parts.  Such  analysis  may 
often  reveal  the  fact  that  the  letter  is  of  no  value  and  should  be 
rewritten. 

A  letter  which  answers  the  purpose  for  which  it  is  intended 
must  present  the  thought  which  the  writer  wants  to  convey  in 
such  a  way  that  the  reader  takes  an  interest  therein  and  feels 
that  the  writer  is  telling  something  that  is  of  value  to  know. 
It  is  therefore  to  the  writer's  interest  first  to  make  clear  to  him- 
self how  best  to  present  his  subject  so  that  it  will  appeal  to  the 
reader  and  appear  of  interest  to  him. 

The  very  first  sentence  of  the  letter  should  arouse  interest, 
but  often  the  beginning  of  a  letter  is  the  weaker  part.  It  should 
never  begin  with  "I "  or  "  we  "  as  "  We  are  pleased  to  inform  you 
that  we  will  be  in  a  position  to  manufacture  all  kinds  of  fancy 
ice  creams  beginning  May  ist  and  we  most  earnestly  solicit 
your  patronage,  etc."  This  information  might  be  of  some  inter- 
est to  a  party  owning  a  financial  interest  in  this  particular  ice 
cream  factory,  but  not  to  a  customer  and  even  less  to  the  one 
who  has  never  purchased  ice  cream  from  that  factory.  The 
writer  should  endeavor  to  place  himself  in  the  background 
and  the  one  addressed  in  the  foreground.  It  would  appeal 
more  to  a  woman  if  it  could  be  shown  to  her  that  this  letter 
were  written  entirely  for  her  benefit.  A  letter  such  as  the  fol- 
lowing comes  nearer  meeting  this  requirement. 

"  Dear  Madam:  You  always  desire  to  have  for  your  parties 
an  ice  cream  which  is  somewhat  different  from  that  served  by 
your  neighbors.  If  you  consider  that  we  can  assist  you  in  this 
matter  then  we  should  be  glad  to  have  you  call  us  over  the 
phone  at  any  time.  We  are  just  equipping  our  factory  for 


BUSINESS   CORRESPONDENCE  315 

taking  care  of  special  orders  and  shall  endeavor  to  keep  the 
quality  of  our  product  up  to  your  expectation." 

A  letter  is  often  started  as  follows:  "We  have  your  favor  of 
the  fifth  inst.,  etc./'  or  "Relying  to  your  favor  of  August  6th, 
etc."  Such  may  be  satisfactory  for  a  certain  kind  of  corre- 
spondence when  it  serves  as  a  connecting  link  between  this  and 
a  letter  just  received,  but  for  a  selling  letter  such  a  beginning  is 
rather  weak.  The  letter  becomes  stronger  if  beginning  at  once 
with  the  subject-matter;  at  the  close  of  the  letter  the  statement 
may  be  made,  "This  is  in  reply  to  your  favor  of  August  6th." 

A  letter  should  be  simple  and  clear  so  the  meaning  thereof 
is  readily  understood  by  the  reader.  Long  words  should  be 
avoided,  short  Anglo-Saxon  words  are  always  the  most  em- 
phatic. Technical  words  and  terms  should  never  be  used  unless 
a  technical  subject  is  treated  and  the  letter  is  written  to  some 
one  who  is  technically  trained. 

Good  tact  and  judgment  are  essentials  in  business  corre- 
spondence. A  letter  that  answers  its  purpose  should  always 
make  the  reader  feel  somewhat  more  friendly  toward  the  writer 
or  the  firm  from  which  it  came.  A  letter  which  cannot  accom- 
plish that  is  either  of  no  value  or  it  may  prove  to  be  injurious. 
The  following  letter  is  one  of  the  latter  type. 

"  Dear  Sir:  We  have  your  favor  of  recent  date  asking  for  a 
subscription  for  the  erection  of  your  new  lodge  hall. 

"  We  hardly  consider  that  we  should  be  called  upon  by  your 
members  for  a  donation,  as  the  members  of  our  firm  all  belong 
to  the  Greenview  Lodge  and  help  to  pay  for  the  upkeep  of  same; 
however,  we  like  to  see  you  meet  with  success  and  inclose  here- 
with ten  dollars  as  our  donation. 

"  Yours  truly  " 

The  writer  of  the  above  letter  should  first  have  decided  in  his 
own  mind  as  to  whether  or  not  the  cause  was  a  worthy  one, 
whether  or  not  he  could  afford  to  make  a  donation,  and  possibly 
also  the  advertising  value  of  such  a  donation.  If  he  decided  to 
make  the  donation  he  should  endeavor  to  go  on  record  as  a 


316  MANAGEMENT   OF   DAIRY  PLANTS 

willing  and  cheerful  giver  instead  of  critizicing  the  organiza- 
tion for  calling  for  support.  As  the  letter  now  reads  the  re- 
ceivers of  the  donation  are  made  to  feel  that  they  would  rather 
have  been  without  his  support.  The  letter  might  have  been 
written  in  such  a  spirit  that  it  would  have  been  appreciated 
as  much  as  the  donation  it  contained,  and  the  friendly  feeling 
thus  created  be  of  much  value  even  from  a  business  point  of 
view. 

More  objectionable,  however,  are  letters  that  contain  sar- 
casm or  unfriendly  remarks.  At  times  a  correspondent  will 
receive  such  a  letter  and  will  possibly  take  pleasure  in  using 
similar  terms  for  reply,  but  if  these  matters  are  given  due  con- 
sideration it  is  readily  understood  that  such  a  letter  is  always 
injurious  to  a  business  concern  as  well  as  to  an  individual. 
It  is  therefore  a  safe  policy  for  any  correspondent  to  keep  letters 
written  in  an  angry  mood  on  his  desk  until  the  following  day. 
They  should  then  be  reread  and  analyzed  and  should  be  re- 
written if  they  will  not  tend  toward  creating  a  more  friendly 
feeling  between  the  writer  and  the  addressee.  It  should  al- 
ways be  borne  in  mind  that  there  is  nothing  which  will  humil- 
iate the  writer  of  a  sarcastic  letter  more  than  to  receive  a  kind 
and  friendly  letter  in  return. 

The  volume  of  business  and  character  of  business  done  by 
the  firm  to  whom  the  letter  is  addressed  and  even  more  the 
individuality  of  the  one  who  acts  on  the  letter,  if  such  is  known, 
should  be  important  guides  for  the  writer.  It  at  times  appeals 
to  the  reader  if  his  name  is  embodied  in  the  letter,  as  "We  be- 
lieve you  are  aware,  Mr.  Smith,  that  our  firm  appreciates  your 
business  very  much,  etc."  The  busy  man  wants  a  short  letter 
full  of  facts  and  information.  The  one  who  receives  but  few 
letters  will  often  take  time  to  read  a  long  letter  and  enjoy  it. 
It  is  the  safest  policy,  however,  to  make  a  business  letter  brief 
without  sacrificing  any  of  the  essentials. 

Often  a  direct  question  is  asked  in  a  letter.  It  is  convenient 
to  the  writer  to  receive  the  reply  to  the  question  on  the  same 
letter  and  a  request  should  be  made  when  closing  the  letter 
asking  a  reply  be  made  on  the  back  of  the  letter. 


BUSINESS   CORRESPONDENCE  317 

V.  The  Complimentary  Close.  —  The  complimentary  close 
mostly  adopted  by  the  American  business  men  is  either  "Yours 
truly  "  or  "Yours  respectfully.7'    The  first  word  of  the  compli- 
mentary close  should  be  capitalized  and  it  should  be  written  on 
the  line  below  the  last  one  of  the  body  of  the  letter. 

VI.  The    Signature.  —  The  signature    should  be  written 
plainly  so  it  may  readily  be  read.     It  should  preferably  be 
written  in  black  ink. 

C.  THE  FORM  LETTER 

The  form  letter  is  often  used  by  the  creamery  manager  for  the 
purpose  of  furnishing  general  information  to  patrons  or  custom- 
ers. It  is  commonly  used  to  acknowledge  receipt  of  a  ship- 
ment from  a  new  patron.  Such  a  letter  will  also  furnish  infor- 
mation in  reference  to  the  company's  system  of  paying  and 
other  information  as  may  be  desired  by  the  patron.  Many 
general  questions  are  asked  which  may  be  answered  to  greater 
or  less  extent  through  form  letters. 

For  selling  goods  or  purchasing  cream  the  form  letter  has 
been  an  important  factor.  A  series  of  letters  is  prepared,  one 
supposed  to  follow  the  other  at  proper  intervals.  Such  letters 
should  be  prepared  systematically,  gradually  bringing  the 
receiver  up  to  the  point  when  his  desire  to  do  business  with  the 
firm  becomes  strong  enough  so  it  leads  him  to  action.  When- 
ever a  reply  has  been  received  to  one  of  the  letters  the  form 
letter  has  answered  its  purpose  and  a  personal  letter  should 
follow. 

When  using  the  form  letter  it  is  taken  for  granted  that  the 
same  desires  exist  in  the  minds  of  all  and  that  the  same  argu- 
ments will  appeal  to  all  alike.  A  form  letter  that  sells  and  buys 
goods  must  contain  good  arguments  presented  in  an  interesting 
way.  When  writing  a  form  letter  it  is  well  to  have  several 
written  and  to  test  them  out  by  mailing  a  certain  number  of 
each  and  noting  the  per  cent  of  replies  obtained  from  each. 

A  form  letter  should  not  merely  contain  strong  arguments, 
but  it  should  also  be  neatly  written  and  properly  signed  so  it 


3l8  MANAGEMENT   OF   DAIRY  PLANTS 

will  not  have  the  appearance  of  a  form  letter,  for  it  is  the  per- 
sonal touch  given  to  a  letter  that  makes  it  valuable  and  of 
interest  to  the  one  who  reads  it. 

Records  of  form  letters  are  most  readily  kept  on  cards  filed 
away  in  alphabetical  order  in  a  special  file.  When  a  reply  has 
been  received  to  one  of  the  form  letters  the  corresponding  card 
will  be  removed  to  another  file  and  should  this  person  later  be- 
come a  customer  the  card  will  be  filed  among  the  cards  of  ac- 
tive customers. 

D.  FILING  OF  CORRESPONDENCE 

A  creamery  handling  a  comparatively  small  amount  of  mail 
may  conveniently  use  a  small  filing  case  in  which  the  corre- 
spondence is  filed  alphabetically.  This  system,  however,  be- 
comes impossible  in  a  larger  business,  and  the  vertical  drawer 
files  then  become  the  most  useful.  The  letters  are  filed  away  in 
folders  of  standard  size,  9  3/8  X  n  7/8  inches  with  3/4  inch 
projecting  tabs.  The  letters  may  be  filed  in  alphabetical  order, 
geographically,  or  numerically.  The  alphabetical  order  may  be 
considered  as  being  the  simplest.  This  is,  however,  less  con- 
venient for  some  of  the  other  departments,  such  as  the  sales 
and  credit  departments,  for  which  the  geographical  system  of 
filing  has  its  advantages.  The  letter  folders  may  be  filed  in 
numerical  order,  but  if  that  system  is  employed  then  an  index 
reference  card  file  will  be  required.  The  cards  of  such  a  file  are 
placed  alphabetically  or  geographically  and  refer  to  number  of 
folder. 

Business  correspondence  should  be  transferred  about  once  a 
year.  For  transfer  files  cheap  vertical  files  may  be  used  and  the 
correspondence  should  be  filed  away  in  them  so  as  to  correspond 
to  the  general  system  of  the  office. 


CHAPTER  XXIII 
CREDITS  AND  COLLECTIONS 

A.  THE  CREDIT  MAN 

THE  concern  selling  goods  on  the  credit  system  to  other 
concerns  or  to  individuals  should  be  in  a  position  to  form  an 
opinion  of,  or  to  obtain  reliable  information  as  to,  the  responsi- 
bility of  the  purchasers  in  question.  Such  information  is 
supplied  to  the  sales  department  by  the  credit  man.  It  matters 
not  whether  the  firm  has  a  separately  established  credit  de- 
partment, the  credit  man  may  be  the  creamery  manager  who, 
as  in  a  small  plant,  may  also  be  the  butter  maker,  but  a  credit 
man  must  necessarily  be  there.  If  he  is  omitted,  the  business 
concern  must  in  safety  confine  its  sales  only  to  cash  sales. 

The  ability  of  the  man  who  is  to  pass  on  credits  is  a  big  factor 
in  the  successful  operation  of  any  large  business.  In  general 
business  is  based  upon  credit;  only  few  concerns  can  pay  cash 
for  all  purchases.  Therefore  a  credit  man  who  can  safely  allow 
credit  to  99  per  cent  of  the  people  entitled  thereto  will  be  of 
greater  value  to  his  firm  than  the  one  who  is  allowing  credit  to 
only  95  per  cent. 

The  credit  man  should  have  a  knowledge  of  the  general  finan- 
cial conditions  and  of  the  factors  affecting  such  conditions. 
If  a  labor  strike  is  started  in  a  certain  locality  he  should  be  able 
to  determine  the  effect  of  such  a  strike  on  the  responsibility  of 
firms  in  that  locality  with  which  he  may  be  doing  business. 
Depression  will  always  follow  a  crop  failure,  therefore  in  a  dis- 
trict where  a  crop  failure  has  been  experienced  it  may  be  advis- 
able to  take  special  precautions  and  decrease  the  amount  of 
credit  allowed,  whereas  more  liberal  credit  may  be  allowed  in 
sections  where  the  crops  have  been  exceptionally  good. 

Full  information  should  be  obtained  in  reference  to  the 

319 


320  MANAGEMENT   OF   DAIRY   PLANTS 

financial  responsibility  of  all  prospective  customers  before  the 
salesman  makes  any  attempt  to  sell  them  goods.  The  retail 
merchant  should  carefully  watch  the  changing  about  of  people 
in  his  community  and  should  investigate  the  responsibility  of 
newcomers  without  delay. 

B.  FACTS  UPON  WHICH  THE  CREDIT  MAN 
BASES  HIS  JUDGMENT 

I.  Commercial  Agencies*  Reports.  —  The  Bradstreet  and 
Dun  agencies  are  considered  the  most  important  sources  from 
which  to  receive  credit  information.  For  a  stipulated  sub- 
scription fee  a  firm  can  secure  the  reports  which  come  in  book 
form.  These  give  the  ratings  of  all  established  business  firms 
and  the  amount  of  capital  stock  that  would  serve  as  a  fair 
estimate  for  credit.  They  furthermore  give  their  ratings  as 
first,  second,  and  third  class.  A  firm  obtaining  a  first  rating 
should  be  a  good  risk  if  the  credit  is  based  on  the  stated  amount 
of  capital  stock.  The  one  obtaining  a  second  rating  is  supposed 
to  be  of  less  responsibility,  is  often  known  to  be  slow  at  paying 
bills.  The  one  obtaining  a  third  rating  cannot  as  a  rule  be  con- 
sidered to  be  a  subject  deserving  of  extensive  credit. 

In  addition  to  this  report  these  agencies  are  also  at  all  times 
ready  to  furnish  confidential  information  to  their  subscribers 
concerning  more  recently  established  firms  not  reported  in  their 
regular  report  or  about  firms  reported  but  on  which  a  more 
complete  report  may  be  desired.  For  such  confidential  reports 
or  for  part  of  them  a  small  charge  is  made. 

Local  credit  interchange  bureaus  are  found  in  nearly  all 
cities  and  are  known  by  various  names.  Such  are  often  asso- 
ciated with  a  national  association.  These  organizations  are  all 
formed  for  the  purpose  of  interchanging  credit  information.  If 
a  member  of  such  an  association  desires  to  obtain  information 
with  reference  to  a  certain  firm,  then  he  merely  turns  in  a  re- 
quest for  information  to  the  bureau  and  usually  within  a  day's 
time  a  report  is  furnished  to  the  inquiring  member  as  well  as  to 
the  members  who  furnished  the  information.  This  report 


CREDITS   AND  COLLECTIONS  321 

usually  states  the  number  of  merchants  furnishing  the  infor- 
mation, amount  due  to  such  merchants,  amount  past  due,  etc. 
In  addition  thereto  is  also  furnished  opinions  of  members  in  ref- 
erence to  whether  the  firm  in  question  is  considered  to  be  prompt 
pay,  medium  pay,  slow  pay,  poor  pay,  or  if  buying  on  cash  basis. 

Members  of  credit  bureaus  at  times  agree  not  to  force  a  col- 
lection from  a  firm  which  is  financially  embarrassed  but  to  re- 
port the  condition  of  such  a  firm  immediately  to  the  secretary  of 
the  bureau  who  in  that  capacity  acts  as  a  representative  of  all 
members  doing  business  with  said  firm.  Members  interested 
send  a  certified  statement  to  the  secretary,  who  will  collect  the 
money  or  as  much  thereof  as  possible,  which  amount  is  pro- 
rated among  such  creditors. 

The  Credit  Men's  Association  is  an  organization  found  in 
nearly  all  cities.  The  membership  is  usually  composed  of  one 
representative  from  each  wholesale  house  of  the  city.  This 
organization  may  or  may  not  be  associated  with  a  national 
association.  The  members  meet  at  more  or  less  frequent  inter- 
vals for  the  purpose  of  exchanging  information  in  regard  to 
their  experience  with  various  creditors. 

Retail  Men's  Credit  Associations  are  found  in  nearly  all 
cities  and  in  most  towns  and  may  or  may  not  be  associated  with 
national  organizations.  The  members  of  these  associations  are 
the  retail  merchants  or  their  representatives.  They  organize 
for  the  purpose  of  obtaining  reliable  credit  information;  some 
such  associations  also  collect  accounts  for  their  members,  and 
some  publish  a  book  once  a  year  with  a  key  to  each  individual's 
rating. 

There  are  a  number  of  other  sources  through  which  credit 
information  may  be  obtained.  Some  private  concerns  furnish 
information  and  often  the  bankers  are  referred  to  for  credit 
information.  The  latter,  however,  are  often  opposed  to  fur- 
nishing such  and  whenever  they  do  it  is  done  as  a  matter  of 
accommodation. 

II.  The  Firm's  Own  Records.  —  Records  of  the  firm's  for- 
mer dealings  with  the  merchant  who  applies  for  credit  offer 
another  important  source  of  information.  It  will  not  be  safe, 


322  MANAGEMENT  OF   DAIRY  PLANTS 

however,  for  a  firm  to  allow  such  a  record  to  be  the  only  source 
of  information  upon  which  to  determine  his  worthiness  for 
credit,  if  such  information  is  not  recent. 

III.  Reports  of  Other  Merchants.  —  This  information  is 
obtained  by  securing  from  the  applicant  the  names  of  other 
firms  from  which  he  is  buying  goods.    The  credit  man  after 
obtaining  such  information  writes  to  the  credit  men  of  these 
firms  for  their  opinion  in  regard  to  the  responsibility  of  the  party 
in  question. 

IV.  Financial  Statement  of  Firm  Represented  by  the 
Applicant.  —  Any  firm  or  individual  asking  for  extensive  credit 
should  be  willing  to  present  a  financial  statement.    Such  state- 
ment should  be  signed  by  the  proper  official  or  party  in  order 
that  it  may  be  of  real  value.    This  statement  is  one  of  the  more 
valuable  parts  of  the  credit  information,  as  it  sets  forth  the 
financial  condition  of  the  concern.     Such  a  signed  statement 
when  received  is  filed  together  with  other  credit  information  in 
reference  to  the  applicant. 

V.  Financial  Responsibility  of  the  Individuals  of  the 
Firm.  —  If  a  corporation,  this  may  not  be  of  much  value,  as  the 
liability  of  the  individual  is  limited.    It  is,  however,  of  much 
value  when  it  concerns  a  copartnership,  as  in  such  any  one  of 
the  partners  can  be  held  liable  to  the  full  extent  of  the  indebted- 
ness. 

VI.  Character  of  the  Individuals  that  Own  and  Operate 
the  Firm's  Business.  —  An  honest  man  with  limited  means  is 
always  a  better  credit  risk  than  one  who  is  dishonest,  even 
though  the  latter  may  be  in  possession  of  unlimited  means.    The 
one  who  is  honest  and  in  possession  of  sufficient  determination 
and  a  strong  moral  character  will  always  be  able  to  demand 
the  limit  of  credit,  whereas  the  one  who  lacks  either  of  these 
qualifications  will  be  considered  with  a  certain  degree  of  sus- 
picion. 

VII.  Business  Experience  and  Ability  of  the  Applicant.  — 
The  person  or  persons  responsible  for  the  outcome  of  the  busi- 
ness should  have  experience  in  that  particular  business.     If 
such  persons  have  been  successful  previously  in  a  similar  line  of 


CREDITS  AND  COLLECTIONS  323 

business  it  is  reasonable  to  suppose  that  they  should  again  be 
able  to  meet  with  success.  It  is  also  well  to  note  if  those  re- 
sponsible for  the  business  give  it  their  personal  attention  and  if 
they  looked  pleased  or  worried.  A  business  manager  who  looks 
worried  should  be  watched  carefully  if  credit  is  extended  to 
him. 

VIII.  Appearance  of  the  Business.  —  A  creamery  doing 
business  with  retail  firms  should  have  representatives  call  on 
the  retailers  at  various  times.  When  making  such  calls  the 
representative  should  be  able  to  make  a  fair  report  to  the  credit 
man  of  the  firm  in  reference  to  the  appearance  of  the  business. 
Such  a  report  should  furnish  the  following  information: 

Amount  of  stock  kept  in  the  retail  store.  If  there  has  been  an 
increase  or  a  decrease  since  the  former  time  when  the  represent- 
ative called.  The  kind  of  stock  kept,  whether  or  not  it  is  com- 
posed of  staple  or  unstaple  articles.  The  retail  dealer  who  is 
dealing  in  such  goods  as  can  readily  be  turned  into  cash  is  al- 
ways a  safer  man  for  credit  than  the  one  who  is  handling  prod- 
ucts of  a  less  staple  nature. 

The  amount  of  business  transacted  should  also  be  considered, 
as  well  as  whether  such  business  is  done  on  a  credit  or  cash 
basis.  If  on  credit  it  is  well  to  consider  the  responsibility  of  the 
class  of  people  to  whom  credit  is  extended  as  well  as  the  fre- 
quency and  method  of  making  collections. 

C.  OFFICE  RECORDS  OF  CREDIT  INFORMATION 

I.  Filing  of  Credit  Information.  —  Credit  information  ob- 
tained through  various  sources  should  be  so  filed  that  it  may  be 
available  when  needed.  It  is  most  convenient  to  have  a  letter 
folder  for  each  person  or  firm  on  which  credit  information  has 
been  secured  and  all  information  obtained  is  filed  in  this  folder. 
The  folders  may  be  filed  geographically  and  alphabetically  as 
in  the  system  recommended  for  filing  under  salesmanship.  The 
geographical  system  of  filing  is  most  serviceable,  as  it  thereby 
becomes  more  convenient  for  the  salesman  when  looking  up 
information  as  to  the  responsibility  of  merchants  in  a  certain 


324  MANAGEMENT   OF  DAIRY   PLANTS 

territory.  It  is  also  possible  that  a  certain  territory  may  suffer, 
due  to  crop  failures,  labor  strikes,  or  similar  causes.  It  there- 
fore becomes  necessary  for  the  credit  man  to  make  a  thorough 
study  and  investigation  of  the  firms  so  affected,  and  then  the 
geographical  system  becomes  the  most  useful  as  well  as  the 
safest. 

II.  Credit  Information  for  the  Salesman.  —  The  salesman 
should  always  be  supplied  with  the  most  recent  credit  informa- 
tion about  his  customers.     Such  is  most  conveniently  kept  by 
him  on  cards  filed  away  in  a  suitable,  compact  case.    It  may  be 
convenient  for  him  to  divide  his  territory  into  different  sec- 
tions each  having  a  separate  file  and  thus  making  it  unnec- 
essary to  carry  a  more  bulky  card  file. 

III.  Credit  Information  for  the  Order  Clerk.  —  The  order 
clerk  is  also  supplied  with  credit  information  to  the  extent  that 
he  knows  whether  to  allow  credit  or  to  demand  cash  for  goods 
sold.    If  the  creamery  is  doing  both  a  city  and  an  out-of-town 
business  then  it  may  be  most  convenient  to  have  two  card 
files,  one  for  city  customers  and  the  other  for  out-of-town  cus- 
tomers.   It  is  most  convenient  that  such  credit  cards  be  filed 
alphabetically.    All  the  information  of  value  to  the  order  clerk 
is  the  correct  name  and  address  of  firm,  nature  of  business, 
credit  or  cash.    If  credit,  the  amount  of  credit  should  be  stated; 
if  cash  should  be  demanded  before  the  got>ds  are  delivered  then 
C.  O.  D.  may  be  marked  across  the  face  of  the  card.    It  is  ad- 
visable that  this  credit  file  be  kept  as  complete  as  possible,  con- 
taining not  merely  information  pertaining  to  present  customers, 
but  also  to  such  as  may  become  customers  within  the  near 
future.    It  is  always  pleasing  to  a  new  customer  to  obtain  credit 
without  having  to  make  application  therefor. 


CREDITS   AND   COLLECTIONS  325 

FORM  XXVII 
THE  ORDER  CLERK'S  CREDIT  CARD 

Name  of  Firm 

Street  Address , . . . 

City  or  Town 

State 

Nature  of  Business 

Credit  or  C.  O.  D 

Amount  of  Credit  Allowed 

Date 

The  ledger  contains  the  most  recent  and  most  reliable  credit 
information  available.  It  is  convenient,  especially  in  a  larger 
business,  to  have  the  amount  of  credit  allowed  marked  on  the 
ledger  leaf  in  such  a  way  that  the  meaning  thereof  may  not  be 
understood  by  any  except  the  regular  office  employees.  It  has 
the  advantage  that  if  a  firm  should  take  more  credit  than  it 
is  entitled  to,  then  the  bookkeeper  can  at  once  call  the  atten- 
tion of  the  credit  man  thereto. 

D.  COLLECTIONS 

A  business  firm  will  establish  its  own  terms  on  which  its  goods 
are  to  be  sold.  Such  terms  should  be  fair  to  the  buyer  as  well 
as  to  the  seller.  The  terms  should  also  be  fully  explained  to  the 
customers  in  order  to  eliminate  all  misunderstandings.  After 
the  terms  have  once  been  established  the  firm  should  enforce 
them  to  the  best  of  its  ability.  An  organization  that  is  always 
collecting  its  accounts  on  a  definite,  prearranged  time  will 
have  less  difficulty  in  obtaining  prompt  payments  than  a  firm 
making  its  collections  at  irregular  intervals.  By  being  prompt 
in  making  collections  the  debtor  involuntarily  comes  to  realize 
that  it  is  just  as  important  that  the  account  is  paid  on  time 
as  it  is  that  he  receives  the  goods  on  time. 

I.  Frequency  of  Making  Collections.  —  The  frequency  of 
collecting  bills  is  governed  to  some  extent  by  the  adopted  cus- 
toms of  other  merchants;  however,  such  customs  may  in  part  be 
ignored.  It  is  customary  in  most  cities  to  collect  weekly  for 


326  MANAGEMENT   OF  DAIRY  PLANTS 

butter  and  cheese  sold  in  the  home  city  or  town,  whereas  for 
butter  or  cheese  shipped  out  collections  are  often  made  every 
other  week.  Butter  and  cheese  are  retailed  mostly  through  the 
grocery  stores.  Such  business  may  be  considered  to  be  fairly 
permanent  and  accompanied  by  less  risk  on  account  of  uncol- 
lectible accounts.  Ice  cream  is  to  a  greater  extent  sold  to 
retailers  whose  business  is  of  a  less  permanent  character.  Sev- 
eral will  remain  in  business  for  only  one  season  or  even  less. 
They  may  also  in  general  be  considered  as  a  class  of  business 
men  not  worthy  of  as  much  credit  as  the  retail  grocer,  and  there- 
fore it  is  the  usual  custom  to  sell  to  many  of  them  for  cash  and 
it  is  seldom  that  more  than  one  week's  credit  is  allowed,  regard- 
less of  whether  the  sales  are  local  or  not.  The  manufacturer  of 
ice  cream  is  justified  in  collecting  promptly,  as  ice  cream  is  a 
commodity  which  is  sold  by  the  retailer  for  cash  within  twelve 
or  forty-eight  hours  after  it  has  been  received.  Where  milk  is 
sold  at  retail  on  the  ticket  system  it  is  often  sold  on  a  cash  basis 
or  up  to  a  month's  credit  may  be  allowed. 

II.  Delinquent  Customers.  —  Delinquent  customers  may  be 
divided  into  four  classes,  "  careless,  chronically  slow,  temporarily 
hard  up,  and  insolvent."  The  careless  customer  may  become 
prompt  by  insisting  on  receiving  prompt  pay.  It  is  advisable 
when  presenting  a  statement  to  a  customer  that  it  shows  plainly 
the  balance  (Form  XXIII),  as  this  will  continually  remind  the 
customer  of  his  delinquency.  The  credit  man  is  continually 
making  comparisons  between  the  figures  of  the  amount  carried 
over  and  that  indicating  his  purchases  not  yet  past  due.  The 
merchant  who  always  carries  a  past  due  balance  is  less  desirable 
as  a  customer  unless  he  becomes  more  prompt  in  meeting  his 
obligations  and  it  is  the  duty  of  the  credit  man  to  cause  such  a 
customer  to  become  prompt  without  thereby  losing  his  busi- 
ness. The  one  who  is  careless  about  paying  his  bills  is  also  apt 
to  be  careless  in  many  other  respects  and  cannot  very  often  be 
considered  a  safe  risk.  The  one  who  is  chronically  slow  may 
be  very  careful  about  his  business  affairs,  is  often  a  good  money- 
maker, but  one  who  will  rather  receive  money  than  pay  it  out. 
The  customer  who  is  temporarily  hard  up  often  deserves  the 


CREDITS   AND    COLLECTIONS  327 

leniency  of  the  merchant  who  sells  him  goods.  By  being  properly 
supported  by  the  creditors  such  a  debtor  will  usually  be  able  to 
readjust  his  financial  affairs  so  that  he  in  time  will  be  able  to 
pay  his  creditors  in  full.  The  insolvent  debtor  is  the  one  whose 
property  will  not  pay  his  liabilities.  A  firm  may  actually  be 
insolvent  long  before  it  becomes  an  acknowledged  fact  and 
accounts  may  be  collected.  Payments  will  become  suspended 
after  it  becomes  an  acknowledged  fact  that  the  debtor  is  insol- 
vent. 

III.  The  Collector.  —  The  collector  is  an  important  assist- 
ant to  the  credit  man.    He  should  always  pay  strict  attention 
to  the  appearance  of  the  business  of  his  firm's  debtors  and 
should  therefore  have  a  fair  understanding  of  the  value  of  goods. 
If  the  debtor  is  not  ready  to  pay  the  bill  when  presented,  then 
the  collector  should  in  a  judicial  manner  secure  information  as 
to  the  exact  time  when  payment  may  be  expected.    The  col- 
lector will  then  make  the  necessary  memorandum  and  this 
should  be  followed  up  by  his  calling  on  the  debtor  on  the  partic- 
ular day,  and  if  possible  a  definite  hour,  when  the  payment  of 
the  bill  has  been  promised.    Should  the  debtor  fail  to  pay  this 
time  it  should  be  expected  that  he  will  present  a  satisfactory 
reason  for  his  delinquency. 

IV.  Collecting  by  Correspondence.  —  It  is  of  greatest  im- 
portance that  statements  be  rendered  at  regular  and  definite 
times.    If  two  weeks'  credit  is  allowed  then  statements  should 
be  mailed  every  two  weeks,  leaving  on  the  same  mail  each  time. 
It   should  be   definitely  agreed    upon   between   creditor  and 
debtor  that  remittance,  should  be  forthcoming  within  a  certain 
number  of  days  after  the  date  of  statement.    If  the  statement 
is  dated  on  Monday  of  the  week,  most  creameries  will  expect 
remittance  not  later  than  Friday  of  the  same  week.    If  remit- 
tance is  not  received  by  that  time  another  statement  should  be 
mailed  the  following  morning.     If  remittance  is  not  received 
within  a  reasonable  time  after  the  second  statement,  then  a 
third  statement  may  be  rendered,  bearing  a  footnote  calling  the 
debtor's  attention  to  the  delinquency  of  the  account  and  ad- 
vising him  that  unless  paid  within  a  certain  time  a  sight  draft 


328  MANAGEMENT   OF  DAIRY  PLANTS 

will  be  sent  through  his  bank.  Such  a  footnote  may  be  placed 
by  using  a  rubber  stamp  and  may  be  worded  as  follows:  "If 

remittance  is  not  received  before  then  we  take  it  for 

granted  that  you  prefer  to  have  us  draw  on  you  for  the  amount." 
If  remittance  does  not  follow,  a  sight  draft  should  be  made 
out  at  the  time  specified.  This  is  turned  in  to  the  bank  for  col- 
lection. It  is  preferable  that  a  sight  draft  be  made  out  through 
the  bank  at  which  the  debtor  has  his  deposit,  as  the  debtor  will 
be  less  liable  to  give  an  evasive  answer.  If  a  sight  draft  is  not 
honored,  a  good  heart-to-heart  letter  will  often  bring  about  the 
desired  result,  but  if  not,  it  may  be  necessary  to  resort  to  other 
means  for  making  the  collection.  Possibly  a  local  attorney  or 
some  collecting  agency  may  be  most  successful  in  bringing 
about  a  speedy  settlement. 

V.  Collecting  Agencies.  —  Collecting  agencies  are  estab- 
lished in  some  cities  for  the  purpose  of  collecting  accounts. 
Such  agencies  are  mostly  employed  by  the  retail  dealers.  Some 
are  organized  in  connection  with  their  associations  such  as  have 
been  mentioned  in  connection  with  Retail  Men's  Credit  Asso- 
ciation. Others  are  private  concerns.  Some  retail  merchants 
will  turn  all  their  accounts  over  to  such  agencies  for  collection. 
The  claims  made  in  favor  of  collecting  agencies  are  that  they 
make  the  collections  at  less  cost  than  is  possible  if  made  by  the 
individual  merchants,  and  that  they  are  better  trained  as  col- 
lectors and  as  a  result  less  money  is  lost  due  to  bad  accounts. 
Arguments  against  this  system  of  collecting  may  be  based  on  the 
ground  that  if  he  adopts  it  then  he  will  not  be  in  as  close  touch 
with  his  customers  and  that  the  collector  is  not  working  directly 
under  the  merchant  for  whom  he  collects  and  may  therefore 
adopt  means  fpr  collecting  which  would  not  be  approved  by 
the  seller.  Furthermore  some  customers  are  opposed  to  having 
a  collector  employed  by  a  collecting  ag6±icy  call,  as  such  are 
often  known  to  be  employed  for  collecting  bad  debts. 

For  collecting  bad  accounts  a  local  collecting  agency  will 
often  prove  to  be  very  efficient.  Local  attorneys  may  also  be 
employed  to  advantage.  They  are  usually  willing  to  collect  on 
a  percentage  basis. 


CREDITS   AND    COLLECTIONS  329 

VI.  Selling  on  Sight  Drafts  or  Time  Drafts.  —  This  prac- 
tice may  not  be  followed  entirely  because  of  fear  that  the  one 
receiving  the  goods  will  not  be  able  to  pay  therefor.  However, 
it  is  the  safe  system  by  which  to  ship  goods  to  persons  or  firms 
that  are  not  able  to  satisfy  the  shipper  as  to  their  financial 
responsibility.  The  smaller  creameries  are  often,  when  ship- 
ping butter  or  cheese  to  commission  merchants,  making  out 
sight  drafts  for  part  value  and  at  times  when  the  butter  has  been 
contracted  for  at  a  definite  price  the  shipper  will  draw  a  sight 
draft  for  part  or  at  times  for  the  total  value  of  the  products 
shipped.  By  this  method  the  creamery  is  receiving  cash  for  its 
products  and  will  require  less  money  for  carrying  on  its  busi- 
ness. 

The  sight  draft  when  used  for  such  a  purpose  is  attached 
to  the  bill  of  lading  and  is  forwarded  through  the  local  bank 
to  the  bank  on  which  it  is  drawn,  this  bank  being  located  in 
the  city  to  which  the  goods  are  being  shipped.  The  sight  draft 
is  presented  to  the  consignee  for  payment  who  on  payment 
thereof  receives  the  bill  of  lading  for  goods  covered  by  draft. 
.  Some  shippers,  especially  shippers  of  carload  lots,  make 
all  collections  on  time  drafts.  These  are  similar  to  the  sight 
drafts  except  that  they  are  not  payable  on  sight  but  payable  in 
five,  ten,  or  fifteen  days  or  may  be  made  out  for  any  time  agreed 
upon  between  the  shipper  and  the  consignee.  Such  a  draft  is 
sent  through  the  bank  in  a  similar  manner  as  the  sight  draft,  but 
when  presented  by  the  bank  to  the  consignee  the  draft  is  accepted 
by  the  consignee  who  in  return  receives  the  bill  of  lading.  When 
accepting  a  time  draft  the  word  " accepted"  is  written  across 
the  face  of  the  draft  and  signed  by  an  officer  of  the  firm  ac- 
cepting the  draft.  The  banker  who  holds  the  draft  will  present 
it  to  the  consignee  for  collection  the  day  it  becomes  due. 


330 


MANAGEMENT  OF  DAIRY  PLANTS 

FORM  XXVII-A 
A  BANK  DRAFT 


The   Royal   National  Bank  NO. 

Royal,  France 192 


ROVJVL  EXCHANGE   BANK 
OF  PARIS 


FORM  XXVIII 

SIGHT  DRAFTS 


Roya.1,  France  _._4atoh*r. 192. Q.....J 

.* .«..i_g.&. i -P«uj  to  the  order  of 

i-t.Jl.Ajjj.a B.*_n.Jt.., >.„ , 

.DOLLARS 

~\Vlth  Exchange  ««tlColiecUon~.ChaJ^,~''' 

J.ififl  J» RoyoJ.  France... .flotah«r...ia, J9ZO ... 

_j..t..._a  j..»Jh..t.,_.A.a_.^.ri.i.*.a.j. o-f ».a..ajl.* ^fty  to  the  order  of 

JLJLr.ji..t....JLAJt-X-«LJ..a_l._.J-a.Ji-k. 

Ojo_«_Ji..«Ln.d.jr..«_4.._JtJ.Jt.i.jr-*--JlJ.7-l-DLjQ 

With T&chwxje  orHd~CMedUon~a^gea 


CREDITS   AND   COLLECTIONS  331 

FORM   XXIX 
A  TIME  DRAFT 


5QO  QO       1 

RoijaJ,  Prance               (totofcM  It        J9EO 

.        fe 

""              0 

4*      J^-ll      6               i 

i 

f"    »  1  r 

C*  .  8j.AJLJLn.vl..  B  %JB.*  ,_.  ...    _.  .._.     . 

s* 

? 

/  1  3-JL      J&. 

& 
Jl-4  t  «.JL« 

BJL/_1J1^-                            -                          -                           DOLLARS 

1* 

K 

1 

For  _LS..TJ». 
To            *  o  ll 

.Q.t  ;.JLJ(  1     JU5_t_Ji       1  9  [  a.5._;-^_CCJUJ.SQQ  

With  Eacchange   and  Col  lection  Charges 

1 

•  t  i  •  ..     - 

?T.vno^__              _               I  i  JLJL  1  •  H.     Da« 

There  are  four  kinds  of  drafts  —  "bank  drafts,"  "  on  demand 
drafts,"  "sight  drafts,"  and  "time  drafts."  A  "bank  draft"  is 
drawn  by  one  bank  on  another.  An  "on  demand  draft"  is 
drawn  on  one  person  by  another  and  is  payable  as  soon  as  pre- 
sented. A  "sight  draft"  is  drawn  on  one  person  by  another;  in 
some  states  it  is  payable  immediately  upon  presentation,  and 
thus  becomes  an  "on  demand  draft,"  but  in  other  states  it 
becomes  payable  three  days  after  it  has  been  accepted  by 
the  person  on  whom  it  is  drawn.  We  speak  of  one,  two,  three, 
four,  or  five  day  sight  drafts;  then  one,  two,  three,  four,  or 
five  days  respectively  will  be  added  to  the  three  days  of  grace. 
If  it  is  written  for  more  than  five  days  it  is  considered  to  be 
a  time  draft.  The  first  three  kinds  of  drafts  are  considered 
by  the  bookkeeper  as  belonging  to  the  cash  account,  whereas 
the  time  drafts  are  considered  as  bills  receivable  or  bills  payable. 

VII.  Shipping  Goods  C.  O.  D.  — The  C.  O.  D.  (Cash  on 
Delivery)  system  is  made  use  of  for  smaller  shipments,  such  as 
when  cream  or  butter  is  shipped  to  firms  to  which  credit  is  not  ex- 
tended. By  this  system  the  transportation  company  makes 
collection  for  the  shipper  before  goods  are  delivered  and  the 
shipper  will  either  receive  the  money  or  have  the  goods  returned. 


CHAPTER  XXIV 
CREAMERY  BOOKKEEPING  * 
A.  DEFINITION  AND  GENERAL  INFORMATION 

BOOKKEEPING  is  the  science  of  making  a  systematic  record  of 
business  transactions.  By  a  business  transaction  is  understood 
an  exchange  of  values. 

I.  Systems  of  Bookkeeping.  —  The  systems  adopted  by  the 
various  firms  differ  greatly  so  as  to  meet  the  needs  of  the  va- 
rious concerns.    There  are  two  general  systems  known  in  book- 
keeping which  include  all;  these  are  "  Single  Entry  "  and  Double 
Entry  Systems." 

1.  The  Single  Entry  System.  —  By  single  entry  is  understood 
an  entry  to  only  one  account.    This  may  be  a  credit  or  a  charge. 
Only  personal  accounts  are  affected  by  this  system  and  the 
books  will   show  no  balance  and  consequently  no  profit  or 
loss. 

2.  The  Double  Entry  System.  —  By  double  entry  is  under- 
stood an  entry  that  is  made  twice.    If  a  credit  is  made  to 
one  account  a  corresponding  debit  is   made  to   some  other 
account.     By  this  system  the  ledger  is  kept  in  balance  per- 
petually. 

II.  The  Ledger.  —  The  ledger  is  conveniently  divided  into 
two  parts:  first,  the  general  ledger;  second,  the  debit  ledger. 

i.  The  general  ledger  is  a  book  which  contains  a  summary 
of  all  of  a  firm's  business  transactions.  It  shows  its  resources 
and  liabilities. 

1  It  is  suggested  that  students  familiarize  themselves  with  "Accounting  Records 
for  Country  Creameries,"  by  Nahstoll,  Bulletin  No.  559,  U.  S.  Department  of 
Agriculture, 

332 


CREAMERY   BOOKKEEPING 


333 


FORM   XXX 

DEBIT  LEDGER 


NAME:         / 


DATE  ITEMS  PAGE    DEBIT 


CREDIT  PAGE        -  DATE 


£5. 


*C 


50' 


00 


50* 


20 

~29 


2.  The  debit  ledger,  also  known  as  the  dealer's  ledger,  deals 
with  personal  accounts;  it  contains  all  accounts  with  the  firm's 
customers. 

The  left-hand  side  of  the  ledger  is  known  as  the  debit  and 
the  right-hand  side  as  the  credit  side.  The  principal  rules  in 
posting  to  the  ledger  are  first  " debit  what  we  receive"  and 
second  " credit  what  we  give." 

jf    When  the  credit  side  of  an  account  in  a  ledger  is  the  greater, 
i  then  the  amount  by  which  the  credit  exceeds  the  debit  is  either 
a  liability  or  a  gain.    When  the  debit  side  of  the  ledger  is  greater, 
j  then  the  difference  is  a  resource  or  a  loss. 

A  personal  account  is  an  account  with  a  person,  firm,  or  cor- 
poration. 

A  resource  is  anything  of  value  belonging  to  the  firm.  A 
liability  is  anything  that  is  owed,  such  as  a  personal  account, 
bills  payable,  notes  payable,  etc. 

III.  The  Cashbook.  —  The  cashbook  is  a  book  in  which  is 
recorded  a  detailed  record  of  all  cash  transactions.  The  left- 


§ 


oo 


c/) 

K 

z 

UJ 
£ 
UJ 

«o 
0? 

D 
QD 

V) 

Q 

3: 

V) 

< 

O 

V) 

& 

UJ 

y 

tv 
3 

1  DEPARTMENTS 

fl 

'1 

5: 

s| 

L 

«| 

*i 

< 

'"E  u 

^ 

Q) 

E 

i 

I 

3sJ 

DEPARTMENTS 

Q-    * 

il 

;« 
^ 

0)     f 

°   tt 

~  ^) 

1 

$ct 
J?  °<* 

•5  .8 
<S£ 

*•  -o 

Eg 

«£ 

0 

d 

« 

i 

334 


CREAMERY   BOOKKEEPING  335 

hand  side  of  the  cashbook  is  the  debit  side  on  which  is  recorded 
cash  received.  The  right-hand  side  is  the  credit  side  on  which 
is  recorded  cash  paid  out.  All  receipts  and  disbursements  may 
be  entered  in  detail  in  the  cashbook;  however,  that  system  may 
not  be  practical  to  the  average  creamery.  A  complete  record 
should  be  made  in  detail  of  all  receipts.  Cash  sales  for  the  day 
may  be  entered  as  one  item.  By  adhering  to  the  system  out- 
lined in  the  following  it  becomes  possible  to  materially  reduce 
the  number  of  entries  to  be  made  in  the  cashbook. 

A  petty  cash  record  may  conveniently  be  kept  in  many  dairy 
establishments  where  small  sums  of  money  are  paid  out  daily  in 
the  form  of  cash.  By  that  system  a  check  should  be  drawn 
crediting  cash  and  debiting  petty  cash. 

IV.  The  Check  Register.  —  The  check  register  is  a  record  of 
all  checks  issued.  Checks  should  be  drawn  for  all  money  paid 
out,  and  the  check  register  should  therefore  check  with  the  pur- 
chase record.  No  itemized  record  needs  to  be  made  of  the  milk 
and  cream  pay  roll,  but  one  entry  should  be  made  daily  of  the 
total  amount  paid  for  milk  and  cream.  The  check  register 
should  also  at  all  times  show  the  bank  balance.  The  stub  of  the 
check  book  may  be  satisfactorily  used,  thus  eliminating  a  spe- 
cial form  of  check  register. 

B.  RECORD  OF  PURCHASES 

I.  Milk  and  Cream  Purchases.  —  Milk  received  at  a  whole 
milk  creamery  is  recorded  on  a  blank  known  as  "the  milk, 
receiving  record."  It  is  not  transferred  to  any  other  form  of 
record  before  payment  is  made,  when  it  may  be  transferred  to 
the  general  purchase  record  as  one  single  item  of  milk  purchased 
for  the  period.  Creameries  receiving  cream  are  forced  to  keep 
more  detailed  records  as  each  separate  lot  of  cream  is  tested 
and  the  butter  fat  calculated.  Cream  collected  on  routes 
may  be  recorded  on  a  driver's  report  blank  (Form  IX, 
p.  1 1 8).  The  entire  load  of  cream  collected  by  a  driver  is  at 
the  creamery  recorded  on  the  daily  cream  receiving  record 
(Form  VIII,  p.  113),  and  a  special  route  checking  record  (Form 


I 


336 


CREAMERY   BOOKKEEPING 


337 


X,  p.  119),  is  kept  of  losses  or  gains  sustained  from  each  route 
operated. 

The  accounts  of  the  individual  patrons  are  daily  transferred 
from  the  cream  receiving  record  and  from  the  driver's  reports  to 
the  patrons'  statements.  These  are  often  attached  to  the  check 
blanks  and  are  filed  alphabetically  in  a  loose-leaf  binder.  When 
time  for  making  remittance,  the  statement  with  check  properly 
made  out  is  delivered  to  the  patron.  A  duplicate  (a  plain  sheet 
of  cheap  paper  may  be  used  for  this  purpose)  is  kept  for  refer- 
ence and  filed  alphabetically  and  divided  numerically  in  accord- 
ance with  date  of  payment. 

FORM  XXXIII 
PATRONS  STATEMENT  AND  CHECK 


'Royal 


(tfreamrry   (Co. 

ROYAL,      FRANCE 


ROYAL,  FRANCE, 


ROYAL    CREAMERY     CO. 


NOTICE    Check    hereto  attached   is  in   payment  of  the  follow! nq   items.     If  incorrect. 


return   at  once   with  check. 


ROYAL  CREAMERY    CO 


DATE 

5CORE 

LBSCREAn 

TEST. 

LB5.FAT 

PRICE 

AMOUNT 

nCRCMANDISE     PU 

RCMA5ED 

.AUL.NG 

TTlavA/ 

92 

43 

32 

/53 

3/y 

^ 

^ 

Z*^utt£A, 

f>4 

ts. 

3- 

93 

315 

/4  2 

3/5 

^ 

/17 

/4 

s 

93 

46 

31 

/43 

3/5 

4 

in 

i*  At&fA, 

<M 

"1 

TOTAL 

/ 

I 

7<) 

/ 

ss 

43 

Amount  of  Check.  S/Z2* 

Labor  is  saved  by  having  statement  and  check  attached,  as  it 
becomes  necessary  to  write  the  name  of  a  patron  only  once, 
whereas,  if  separate,  the  name  should  be  on  the  statement,  on 
the  check,  and  on  the  check  register.  Furthermore  it  should  be 
noted  on  the  check  register  the  item  for  which  the  check  was 


<A 
UJ 
40 

< 

O 
B 

>      & 

M 

rS      IL 

M      O 

§   i 

&      O 

g  a 


o 

N 

Z 
u 

h 


§1 


5 


^s^ 


338 


CREAMERY   BOOKKEEPING  339 

issued.    That  information  is  by  this  system  contained  on  the 
duplicate. 

As  will  be  noted,  the  statement  (Form  XXXIII)  also  answers 
the  purpose  of  a  patron's  ledger,  and  the  bookkeeping  is  thus 
materially  facilitated  and  it  assures  prompt  payment  for  mer- 
chandise purchased  by  the  creamery  patrons. 

II.  Forms  of  Purchase  Records.  —  The  purchase  record 
may  for  the  sake  of  convenience  be  divided  into  two  forms,  one 
containing  an  itemized  record  of  purchases  and  the  other  a  sum- 
mary of  daily  purchases. 

An  itemized  record  of  purchases  is  kept  so  the  one  who  is  in 
charge  of  purchases  may  be  enabled  to  know  when  orders  for 
goods  were  placed,  when  such  goods  were  received,  and  when 
paid  for.  Such  a  record  is  convenient  to  refer  to  at  various 
times  and  particularly  when  closing  the  books  at  the  end  of 
each  month.  A  glance  at  this  report  will  give  information  as  to 
whether  the  goods  inventoried  at  the  close  of  the  month  have 
been  paid  for. 

The  monthly  purchase  record  furnishes  a  record  of  all  pur- 
chases made  during  the  month  including  all  items  which  have 
been  paid,  such  as  labor,  insurance,  interest,  depreciation,  etc. 

Entries  may  be  made  on  the  monthly  purchase  record  when- 
ever payments  are  made,  or  not  later  than  the  last  day  of 
the  month  for  all  goods,  labor,  etc.,  received  during  the 
month. 

III.  Record  of  Depreciation.  —  Depreciation  and  similar 
items,  the  amounts  of  which  are  paid  back  to  the  firm,  may  be 
treated  the  same  as  any  account  payable  and  a  check  issued, 
payable  to  the  firm  by  which  issed.    This  amount,  as  in  case  of 
depreciation,  is  credited  to  the  plant  and  equipment  account 

•and  charged  against  the  expense  accounts  of  the  departments. 
The  advantage  in  issuing  a  check  for  the  amount  is  that  the 
amount  of  checks  issued  should  equal  the  total  amount  of  the 
purchase  record. 

The  general  ledger  should  always  contain  a  complete  record 
of  depreciations.  Consider,  for  example,  the  equipment  ac- 
count; the  cost  of  the  equipment  should  be  entered  on  the  debit 


340 


MANAGEMENT   OF   DAIRY   PLANTS 


M 


CREAMERY   BOOKKEEPING  34! 

side  of  the  ledger  while  the  amount  depreciated  is  entered  on  the 
credit  side.  Suppose  the  value  of  the  equipment  January  ist 
is  $3,000  and  that  a  depreciation  of  $50  per  month  is  allowed; 
then  the  equipment  will  at  the  close  of  the  year  show  a  value 
of  $2,400,  provided  no  new  equipment  was  added  during  the 
year.  If  equipment  to  the  amount  of  $300  was  added,  then 
the  equipment  account  will  show  a  value  of  $2,700.  The 
amount  depreciated  should  represent  the  actual  loss  due  to  wear, 
breakage,  etc. 

A  creamery  operating  routes  with  its  own  teams  and  wagons 
should  keep  a  similar  ledger  account  of  the  horses,  wagons,  and 
harness.  If  several  departments  are  operated  by  the  same 
creamery,  such  as  ice  cream,  butter,  and  cheese  departments, 
then  a  separate  ledger  account  should  be  kept  of  the  equipment 
for  each  separate  department.  If  the  creamery  owns  its  own 
building,  a  building  account  should  be  carried,  etc.  The  ob- 
ject is  that  the  record  should  always  be  complete  enough  so  that 
the  management  at  all  times  will  have  a  correct  idea  of  the  assets 
and  liabilities  of  the  enterprise. 

C.  RECORD  OF  SALES 

A  complete  monthly  record  should  be  kept  of  all  sales.  Such 
record  should  be  complete  enough  to  furnish  information 
about  cash  and  credit  sales,  sales  to  patrons,  and  consignments., 

I.  Cash  Sales.  —  Such  are  sales  for  which  cash  is  received 
upon  the  delivery  of  the  goods.    The  only  record  necessary  to 
keep  of  such  sales  is  the  original  sales  ticket  (Form  XXI,  p.  239) 
and  a  total  of  the  day's  cash  sales  is  recorded  on  the  sales 
record. 

II.  Credit  Sales.  —  Credit  sales  are  recorded  on  the  same 
forms  as  cash  sales;  in  addition  thereto  an  entry  of  each  per- 
sonal credit  sale  is  made  to  the  debit  ledger  (Form  XXX). 
After  the  daily  entries  have  been  made  to  the  debit  ledger  the 
sum  of  the  entries  for  the  day  should  be  taken  and  should  check 
with  the  total  credit  sales  as  recorded  on  the  sales  record. 

III.  Sales  to  Patrons.  —  Although  these  are  credit  sales  they 
are  recorded  separately  as,  instead  of  being  entered  on  the  debit 


342  MANAGEMENT   OF   DAIRY   PLANTS 

ledger,  they  are  entered  on  Form  XXXIII  and  remittance  for 
such  sales  are  made  when  the  amount  is  being  deducted  from 
amount  due  the  patron  for  milk  or  cream.  A  ticket  such  as 
Form  XXIV  is  usually  presented  for  such  sales  instead  of  the 
general  sales  ticket. 

IV.  Consignments.  —  Goods  disposed  of  on  consignment 
may  cause  some  confusion  as  the  remittance  is  made  later 
and  there  is  usually  some  shrinkage  in  weight  from  the  time 
the  butter  leaves  the  creamery  until  it  is  sold.  The  price 
is  also  likely  to  change.  The  writer  has  found  it  most  satis- 
factory to  make  a  sales  ticket  for  such  shipment  the  same 
as  for  butter  sold  locally,  figuring  actual  weight  the  day  of 
shipping  and  calculating  the  value  on  the  same  basis  as  that  of 
butter  sold  to  local  merchants.  This  entry  is  made  on  the  sales 
record.  Another  entry  is  made  thereon  when  remittance  has 
been  received.  This  record  is  of  value  to  the  creamery,  also  for 
the  reason  that  if  the  creamery  is  losing  too  much  on  butter 
sold  on  commission,  it  may  be  advisable  to  establish  local  mar- 
kets for  the  entire  output. 

D.  RECORD  OF  INVENTORY 

I.  Monthly  Record  of  Inventory.  —  If  the  monthly  sales 
constitute  the  sales  of  the  product  manufactured  from  the 
monthly  receipts  of  raw  material,  no  more  nor  less,  and  if  the 
material  on  the  purchase  record  includes  such  purchases  as  are 
made  only  for  the  month's  business,  then  the  difference  between 
the  total  monthly  sales  as  recorded  on  the  sales  record  and  the 
total  monthly  purchases  as  recorded  on  the  purchase  record 
equals  profit  or  loss.  This  method,  however,  is  impracticable 
in  business  and  therefore  it  will  be  necessary  to  consider  the 
monthly  inventory  when  making  out  a  report  of  monthly  profit 
and  loss. 

The  monthly  record  of  inventory  is  furthermore  of  value  for 
the  following  reasons: 

1.  For  determining  the  amount  of  supplies  used  during  the 
month. 

2.  As  a  guide  for  placing  orders  for  supplies. 


CREAMERY  BOOKKEEPING 


343 


344 


MANAGEMENT  OF  DAIRY  PLANTS 


3.  As  a  record  in  case  of  fire  loss. 

4.  As  a  check  record  on  waste  of  supplies. 

FORM  XXXVII 

BUTTER  DEPARTMENT 
INVENTORY  —  MONTH  OF  MAY 


Item 

On  hand  May  i 

Purchased 

On  hand  June  i 

Amount 

Value 

Amount 

Value 

Amount 

Value 

Butter  tubs  
Butter  boxes  .... 
Tub  liners  com- 
plete   

152 
20 

200 
150 
1,000 
10  gals. 
4  bbls. 
24 
4 
1 
2  gals. 
6K  gals. 
4  gals. 
1,000 
5  bbls. 

76.00 
5.60 

11.20 
1.50 
1.56 
40.00 
16.00 
24.00 
2.00 
.65 
1.20 
6.50 
1.80 
2.50 
70.00 

300 
200 

1,000 
400 
10,000 

10  bbls. 

12 
6 

5  gals. 

5,000 

150.00 
56  .  00 

56.00 
4.00 
15.60 

40.00 

6.00 
3.90 
3.00 

12.50 

147 

152 

920 
450 
6,500 
7K  gals. 
8K  bl>ls. 
21 
12 
5 
1  gals. 
2  H  gals. 
4K  gals. 
4,750 
3K  bbls. 

73.50 
42.56 

51.52 
4.50 
10.14 
31.00 
34.00 
21.00 
6.00 
3.25 
0.60 
2.50 
2.02 
11.87 
49.00 

Box  liners  
Butter  wrappers 
Butter  color  
Salt  
Thermometers.  .  . 
Can  brushes  
Floor  brushes.  .  .  . 
Acid  '  

Separator  oil  .... 
Engine  oil 

Tub  tins  

Washing  powder  . 

Total  for  supplies 
Coal  on  hand.  .  .  . 
Butter  on  hand  .  . 

IK  tons 
4,078  Ibs. 

260.51 
6.00 
2,854.60 

18 

347.00 
72.00 

6 
47,121  Ibs. 

343.46 
24.00 
2,827.20 

Total  

2,860.60 

419.00 

2,851.20 

The  manufactured  products,  such  as  butter  and  ice  cream, 
may  or  may  not  be  included  on  the  monthly  record  of  inventory, 
but  if  not  included  then  record  of  such  products  should  be  found 
on  a  daily  inventory  record. 

II.  Daily  Record  of  Inventory.  —  This  record  is  primarily  of 
value  for  checking  the  stock  of  manufactured  goods  as  well  as 
stock  of  raw  material  on  hand.  Such  reports  should  be  available 
for  the  manager  daily  and  may  be  in  form  of  a  card  as  Forms 
XXXVIII  and  XXXIX,  or  on  a  large  record  sheet  combined 
with  a  daily  manufacturing  report  as  Form  XL. 


CREAMERY   BOOKKEEPING 


345 


FORM   XXXVIII 


STOCK     RECORD 

Date 

Butter 

Misc  Butter 

Cream 

Milk 

Cheese 

Ice  CREAM 

Miscl. 

Inventory 

Manufactured 

Received 

Gains 

Transferred 

Total 

Transferred 

5old 

Loss 

Inventory 

Form  XXXVIII  is  a  general  form  which  may  be  used  for  the 
entire  stock  in  the  various  departments  while  Form  XXXIX  is  a 
department  inventory  record;  the  latter  containing  a  record  of 
the  manufactured  product  as  well  as  of  milk  and  cream  handled 
for  the  manufacture  of  ice  cream. 

The  inventory  recorded  as  last  item  on  Form  XXXVIII  is  the 
inventory  taken  of  the  goods  in  the  stock  room.  If  this  in- 
ventory does  not  tally  with  the  theoretical  inventory  then  there 
is  a  gain  or  a  loss  in  the  stock  on  hand  and  such  gain  or  loss  is 
recorded  on  report. 

E.  PROFIT  AND  LOSS 

I.  Monthly  Report.  —  The  creamery  business  is  of  such  a 
nature  that  it  is  difficult  to  estimate  profit  or  loss  daily;  the 
prices  are  changeable,  so  is  the  margin  of  profit,  operating  ex- 
penses, losses,  etc.  Therefore  a  complete  report  of  profit  or  loss 
should  be  available  monthly.  Larger  plants  are  even  known  to 
estimate  the  profit  or  loss  for  the  month  at  the  beginning  of  the 
month.  This  estimate  is  then  at  the  close  of  the  month  checked 
against  the  monthly  report.  An  estimate  is  readily  prepared  of 


g 


3 


346 


NP 


CREAMERY   BOOKKEEPING 


347 


348  MANAGEMENT   OF   DAIRY  PLANTS 

the  coming  month's  business  by  comparing  expenses,  output, 
etc.,  with  that  of  the  corresponding  month  of  previous  years. 
This  is  a  valuable  method  for  guarding  against  losses,  and  it  is 
known  that  large  companies  have  made  good  returns  by  adopt- 
ing this  system. 

Records  from  which  the  figures  are  obtained  for  the  profit  and 
loss  report  are  the  purchase  record,  the  sales  record,  and  the 
monthly  inventory  record. 

FORM  XLI 

STATEMENT  or  PROFIT  AND  Loss  FOR  MAY 
Butter  Cr. 

Butter  sales,  18,718  Ibs $11,979.52 

Buttermilk  sales 41.00 

Steam  sold  to  ice  cream  department 20.00 

Butter  on  hand,  June  ist,  4,712  Ibs 2,827.20 

Coal  on  hand 24.00 

Factory  supplies  on  hand 34346 

Office  supplies  on  hand , 24.50 

-    $15,259.68 
Dr. 

Butter  on  hand,  May  ist,  4,078  Ibs $  2,854.60 

Coal  on  hand,          "    " 6.00 

Factory  supplies  on  hand,  May  ist 260.51 

Office  supplies  on  hand  "      " 18.00 

Milk  and  cream  purchased 11,195.14 

Factory  supplies  purchased 347.00 

Office  "  "        lo.oo 

Coal  purchased 72.00 

Power        " 20.00 

Drayage I5-00 

Rent 3°-oo 

Labor 200.00 

Ice 7-50 

Repairs 15-00 

Interest  and  insurance iQ-50 

Depreciation 30.00 

Loss  on  consignments 46.48 

Profit  for  May 112.95 

• $15,259.68 


CREAMERY  BOOKKEEPING  349 

FORM  XLII 

Ice  Cream 

Cr. 

Ice  cream  sales $  2,421.00 

Ice  cream  on  hand,  June  ist 108.00 

Milk  and  cream  on  hand,  June  ist 85.00 

Supplies  on  hand,  June  ist 260.00 

-  $  2,874.00 

Dr. 

Ice  cream  on  hand,  May  ist $  63.00 

Milk  and  cream  on  hand,  May  ist 76.00 

Supplies  on  hand,  May  ist 40.76 

Milk  and  cream  purchased 1,619.80 

Factory  supplies  purchased 284.24 

Office  supplies 15.00 

Power 10.00 

Drayage 60.00 

Rent 15.00 

Labor 150.00 

Ice 101.20 

Repairs 10.00 

Insurance  and  interest 10.20 

Depreciation 25.00 

Steam  from  butter  department ^o.oo 

Profit  for  May 373-8o 

-  $  2,874.00 

The  total  monthly  profit  or  loss  should  be  entered  in  the 
general  ledger,  which  will  serve  as  a  permanent  record.  A  se- 
parate ledger  leaf  is  used  for  each  year.  The  monthly  profit  and 
loss  report,  the  same  as  other  important  records,  should  be  filed 
so  it  may  be  available  for  future  reference.  For  this  purpose  a 
loose-leaf  binder  is  most  satisfactory. 

II.  Financial  Statement.  —  The  financial  statement  is  a 
summary  of  the  firm's  resources  and  liabilities  and  as  such  it 
shows  the  financial  condition  of  the  firm.  The  monthly  state- 
ment of  profit  and  loss  should  be  checked  against  the  financial 
statement.  The  monthly  statement  may  be  considered  correct 


35O  MANAGEMENT   OF   DAIRY  PLANTS 

if  the  resources  of  the  firm  show  an  increase  above  the  liabilities 
equal  to  the  monthly  profit. 

FORM  XLIII 

FINANCIAL  STATEMENT  JUNE  IST 
Resources 

Plant  and  equipment $15,120.00 

Butter  on  hand . 2,827.20 

Ice  cream  on  hand 108.00 

Milk  and  cream  on  hand 85.00 

Coal  on  hand 24.00 

Supplies  on  hand,  butter  department 367.96 

"         "       "      ice  cream    "  260.00 

Accounts  receivable 3,295.02 

Bank  balance 669.77 

Money  on  hand  in  office 52.15 

$22,855.60 

Liabilities 

Capital  stock $15,000.00 

Due  patrons  for  milk  and  cream 660.50 

Bills  payable 370.67 

Notes  payable 5,000.00 

Undivided  profit  previous  to  May 1,291.20 

Profit  for  May 486.75 

$22,855.60 

At  the  close  of  the  year,  plant,  fixtures,  etc.,  should  be  re- 
valued, uncollectible  accounts  and  notes  should  be  charged  off, 
and  the  new  year  should  be  begun  with  figures  representing  the 
actual  value  of  the  resources. 


INDEX 


Absorption  refrigeration,  81 
Acidity  of  cream,  101,  210 
Active  custumers,  233,  237 
Active  patrons,  106 
Advertising,  26,  281 

advertising  manager,  294 

appropriation  for  advertising,  291 

booklets,    298 

circular  latters,  297 

creamery,  299 

essentials,  287,  301 

exhibits,  299 

mailing  cards,  297 

medium  for  advertising,  294 

newspapers  and  magazines,  294 

novelties,  298 

planning  and  writing,   293,   299, 

306 

"policy"  advertising,  286 

programs,  299 

purposes  of  advertising,  282 

scrapbook,  306 

signs  and  billboards,  296 

street  railway  cards,  297 

tools  of  advertising,  302 
Aging   creams,    220 
Air  lift,  161 
Ammonia,  68,  69,  78 
Ammonia  condenser,  70,  76,  78 

atmospheric  condenser,  78 

double-pipe  condenser,  78 
Ammonia  compressor,  70,  72 

double  acting,  75,  76 

single   acting,    75 


Application  blank,  84,  85 
Articles  of  incorporation,  14,  19 
Artificial  cream,  209 
Artificial  extracts,  214 
Asphalt,  28,  30 
Australian  butter  box,  274 

Bacteria  in  cream,  211 
Bacteria  in  ice  cream,  218 
Bad   accounts,    261 
Bank  draft,  329,  331 
Banking  facilities,  6 
Bell  trap,  41 
Berries,  215 
Bills,  127 
Bill   boards,    296 
Blackberries,  215 
Boiler,   138,   157,   164 
Boiler  losses,  134 
Bonds,  91,  1 66 
Bookkeeping,  332 

cashbook,  333 

check  register,  335 

depreciation,  339 

financial  statement,  350 

inventory,  342 

ledger,  332,  337,  339 

patron's   statement,   337 

profit  and  loss,  345 

purchase  record,  335 

sales  record,  341 

systems,  332 
Booklets,   298 
Bottling  cost,  260,  264 


352 


INDEX 


Bourbon  vanilla  bean,  212 
Bradley  box,  275 
Bradstreet  agency,  320 
Branded  butter,  250 
Brick,  31,  33,  34,  53 
Brine  method  of  refrigeration,  70 
Brine  table,  72,  73 
British  thermal  unit,  50 
Broker,  199,  235 

Building,  5,  8,  33,  120,  164,   232, 
299 

chimney,  35 

floor,  9 

foundation,  31,  36 

frame  building,  31 

location,  8,  9 

painting,  37 

roof,  36 

ventilation,  38 

walls,  9,  31,  51 

windows,  9,  53 
Butter,  236,  245,  250,  272 
Butter  barrel,  275 
Butter  box,  272 
Butter  fat,  170,  181,  185 
Butter  grades,  246,  249 
Butter  maker,  90,  93,  95 
Butter  printer,  278 
Butter  this,  276 
Butter  tub,  273 
Buying  supplies,  123 

contract,    125 

cash   discount,    126 
By-laws,  16,  19 

Cans,  112,  115,  164 
Capital  stock,  17,  19,  22 
Carbonic  acid,  68 
Card  records,  106,  237 
Cash  book,  333 
Cash  sales,  341 


Cash  system,  103,  261 
Catch  basin,  42 
Cement,  30 
Cement  block,  31,  34 
Cement  floor,  28 
Certificate  of  stock,  18 
Cesspool,  43 

Checking  routes,  117,  243 
Check  register,  335,  336 
Checks,  103,  237 
Cheese,  231,  236,  253 
Cherries,  215,  217 
Chimney,    35 
Chocolate,  217 
Chocolate    sirup,    218 
Cinders,  56 

Circular  letter,  238,  297,  317 
City  delivery,  256 
Clearance,  80 
Coal,  131 
Cocoa,  217 
.C.  O.  D.  sales,  331 
Collecting  agencies,  328 
Collections,   325,    327 
Collector,  327 
Commercial  agencies,  320 
Commission  merchants,   235 
Commission  sales,  235,  242,  342 
Common  stock,   17 
Competition,  4,  5 
Composite  samples,  117,  191 
Composition  of  butter,  170 
Condensed  steam,  144 
Conduction  of  heat,  50 
Convection  of  heat,  49 
Coolers,  148,  156 
Cooling,  147 
Cooling  tank,  72 
Cooling  water,  148 
Cooperative  creamery,  5,  7,  18,  165 
advantages,  21 


INDEX 


353 


Cooperative  capital  stock,  19 

dividends,  19 

membership,  20 

Cooperative  cream  hauling,  114 
Cooperative  cream  selling,  122 
Cooperative  selling  agency,  236 
Copartnership,   n 

dissolution,  13 

lormation,  n 

liabilities,  12 

partners,  12 
Cork,  56 
Corporation,   14 

advantages,    14 

capital  stock,   17 

certificate  of  stock,  18 

liabilities,    1 7 

officers,    1 6 
Correspondence,  309,  327 

body  of  letter,  313 

filing,  318 

form  letter,  317 

parts  of  letter,  312 

stationery,  309 
Cost 

advertising,  292,  294 

bottling  milk,  259,  264 

buttermaking,  3,  198,  247 

cooling,  147 

delivery,  256,  260,  264,  266 

electric  power,  141 

fruit  sirups,  216,  217 

gasoline  for  power,   140 

homogenization,  209 

ice,  81,  223 

ice    cream    making,     203,     221, 
222 

kerosene  for  power,  141 

labor,  95,  96,  148,  201,  222,  259, 
269 

lemon  extract,  214 


Cost  of  marketing  butter,  199,  200, 
234,  245 

marketing  cheese,  253 

marketing  ice  cream,   254 

marketing  milk  and  cream,  258, 
261,    267 

mechanical  refrigeration,  80 ' 

overhead  expenses,  261,  264 

pasteurization,  143,  149 

power,    223 

printing  butter,   279 

roofs,  36 

routes,  114,  234 

raw  material,  203,  258,  265 

re-icing  ice  cream,  257 

salt,    223 

simple  sirup,  218 

shipping  ice  cream,  254 

steam,  131,  140,  143 

vanilla,  212 

water,   158,   162 
Cream,    102,    116,    204,    210,    220, 

234,    258 

Cream  buyer,  122 
Creamery  construction,   24 
Cream-receiving  station,  5,  120 
Credit  information,  320,  323 
Credit  man,  319 
Credit  men's  ass'n,  321 
Creditors,    13 
Credit  sales,  341 
Curd  in  butter,  180 

Daily  records,  107,  113,  202,  270 

Danish   firkin,    277 

Day- wage,  92 

Dead  air  space,  34,  54 

Debts,  12 

Delinquent  custumers,  326 

Demonstrations,  299 

Density  of  water,  145 


354 


INDEX 


Depreciation,  164,  339 
Direct  expansion,  70 
Directors,  16,  19,  90,  91,  236 
Discontinued  custumers,  237 
Discontinued  patrons,  106,  107 
Distributing  milk,  260,  264 
Dividends,  17,  19,  22 
Dormant  partner,  12 
Dosing  chamber,  44,  46 
Double  acting  compressor,  75,  76 
Double  entry,  332 
Drafts,  329 
Dun  Agency,  320 

Earthern   jars,    275 
Electric  power,  141 
Employees,  84,  90 
Envelope,  310 
Equipment,  123,  148 
Exclusive  agency,  234 
Exhaust  steam,  135,  138 
Exhibits,  299 
Expansion  coil,  70 
Expansion  valve,  70,  78 

Factory   school,   88 

Feed  water,  135 

Feed  water  heater,  138 

Filing,  106,  127,  318 

Fillers  for  ice  cream,  218 

Filter  bed,  44,  46 

Financial  statement,  322,  349 

Fire  brick,  35 

Fire  clay,  35 

Firing,   138 

Flavoring  extracts,   211 

lemon,   213 

orange,  214 

vanilla,  211 
Flavors  in  cream,  101 
Floor  plan,  9,  24 


Floor,  28,  35,  60 

asphalt,  30 

cement,  28 

plank,  30 

stone  and  tile,  30 
Follow-up  system,  104 
Food  value  of  dairy  products,  183 
Foot  pound,  134 
Foundation,  31,  36 
Freezing  ice  cream,  220 
Friction  head,  159 
Fruit,   215 
Fuel,  131,  132 

Gasoline,  140 
Gasoline  engine,  140 
Gelatin,  218 
Gem  fiber  box,  275 
Glymol,  194 
Good  will,  164,  282 
Grading  cream,  100,  102 
Gravity-brine  refrigeration,  62 

Half  tone,  305 
Hauler,  94,  115,  116 
Hauler's  report,  118 
Heat,  133 

Hollow  tile,  31,  33,  34 
Homogenization,  208 
Horse  power,  134,  157 

Ice,  62,  64,  81,  117 

Ice  bunker,  58 

Ice  cream,  203,  231,  234,  254 

Ice  cream  containers,  221 

Ice  cream  freezers,  72 

Ice  house,  58,  60,  63,  64,  67 

Ices,  214 

Illustrations,  303,  305 

Incorporators,  15 

Ink,  310 


INDEX 


355 


Insulated  ice  house,  60 
Insulation,  49 

construction,  54 

material,  51 

piping,  140 
Insurance,   165 

employers'  liability  insurance,  166 

fidelity  insurance,  166 

fire  insurance,  166 
Interest,    165 
Inventory,  128,  342 
Invoices,  127,  240 

Jobber,  199,  200,  235 
Joint-stock  co.,  21,  165 

capital,  22 

dividends,  22 

stockholders,  23 

Kerosene,  141 
Kerosene  engine,  141 
Kilowatt,  141 

Labor,  84,  201,  222 

cost  of  labor  for  pasteurization, 
148 

day- wage,  92 

distributing  cost  of  labor,  96 

hiring  the  employees,  84 

non-productive  labor,  92,  96,  97 

organization  of  labor,  89 

piecework,  93 

premium  and  percentage,  93 

productive  labor,  92,  95 

prompt  pay,  94 

reducing  cost  of  labor.  95 

surety  bond,  91 

time  keeping,  95 

training  the  employee,  87 
Latent  heat  of  fusion,  51 
Latent  heat  of  vaporization,  69 


Laundry,  i 

Liabilities,  12,  13,  17,  333,  350 

Lintels,    35 

Lith,  58 

Losses 

bad  accounts,  261 

boiler,   134,   140 

butter,  196,  243 

butter  fat,  117,  181,  185,  186,  195 

butter  milk,  185 

equipment,    224 

heat,  133,  134,  135 

ice,  64,  66 

ice  cream,  221,  224 

mechanical  losses  in  butter  mak- 
ing, 186,  188 

pasteurization,  152 

power,    134 

refrigeration,  54,  64,  80 

salt,    176 

samples,  190 

skim  milk,  181 

surplus  milk,  260 

testing,  189,  192 

waste  at  milk  plant,  260 

water,  159 

weighing,   188,   190 
Loyalty,  89 

Magazines,  294 

Mailing  cards,  297 

Manager,  10,  90,  91,  229,  232,  236 

Manufacturing  costs,  see  "Costs." 

Manufacturing   records,    202,    222, 

347 

Maps,  104,  233 
Marketing,  226,  231 

commission  sales,  235 

cooperative  selling  agency,  236 

local  markets,  5,   232 

municipal  milk  plant,  237 


356 


INDEX 


Marketing  records,  237 
Mechanical    losses    of    butter    fat, 

181,    195 
Mechanical  refrigeration,  68 

absorption  system,  Si 

compression  system,  69 
Mexican  vanilla  bean,  211,  213 
Milk,  23,  231,  234,  236,  237,  258 
Mineral  wool,  56 
Minor,  12 

Moisture  control,  176 
Moisture  in  butter,  171 
Molding  ice  cream,  221 
Mortar,  30 
Motors,  142 

Natural  refrigeration,  58 
Newspapers  and  advertising,  294 
Nominal  partner,  12 
Nonproductive  labor,  92,  96 
Novelties,  298 

Officers,  1 6,  19 

Oil  trap,  138 

Oleomargarine,   249 

Orange  extract,  214 

Order  clerk,  324 

Originality  in  business,  87 

Ostensible  partner,  12 

Overhead  expenses,  258,  261,  264 

Overrun,    168 

butter  overrun,  168,  183,  186,  195 
ice  cream  overrun,  204,  218 
per  cent  overrun,  169,  218 
value  of  overrun,  170 

Package,  272,  288 
Painting,  37 

enamel  paint,  37 

priming,  37 
Parafiner,    273 


Pasteurization,  143,  210 

cost,  149 

flash  method,  146,  149 

holding  method,  146,  150 
Pasteurizers,  150,  156 

efficiency,  152 

purchasing  a  pasteurizer,  156 
Patrons,  22,  103,  337 

active,    106 

discontinued,    106 

prospective,  106 
Patron's  sales  ticket,  242,  341 
Patron's  statement,  337 
Peach,    215 

Percentage  system  for  labor,  93 
Perpetual  succession,  15 
Piecework,  93 
Pineapple,  215 
Pine  wood,  52 
Piping  for  refrigerator,  72 
Piston  pump,  161 
Plastering,  35 
"Policy"  advertising,   286 
Potassium    chromate,    1 79 
Power,  131,  209 

electric  power,  141 

gasoline  power,  140 

kerosene  power,  141 

steam  power,  131,  140 
Preferred  stock,  17 
Premium  system  for  labor,  93 
Preparing  butter  tubs,  274 
Print  butter,  278,  280 
Process  butter,  249 
Productive  labor,  92,  95 
Profit  and  loss  report,  348 
Programs,  299 
Promotion,  282 
Proprietary  plant,  4,  5,  7 
Prospective  custumers,  233,  237 
Prospective  patrons,  106 


INDEX 


357 


Purchase  of  milk  and  cream,  100, 

335 

cooperative  cream  selling,  122 
cooperative  hauling,  114 
cost,   258 
cream  buyer,  122 
cream  route,  114,  119 
cream  station,  120 
follow-up  system,  104 
grading,   100 
individual  delivery,  108 
records,  338 
shipping,    109 

Quality,  100,  287 
Quick  assets,  5 

Radiation  of  heat,  49 
Railroad  facilities,  8 
Raspberry,    215 
Raw  material,  2,  21,  22,  203 
Real  estate,  16 
Receiving  record,  126 
Refrigeration,  49 

cost,  80 

insulation,  49 

mechanical  refrigeration,  68 

natural  refrigeration,  58 
Refrigerator,  59,  64 
Refrigerator  butter  carrier,  273 
Regenerator,  148 
Rent,  163 
Repairs,  165 
Resources,  333,  350 
Retailer,  199,  200,  232,  247 
Retail  sales,  222,  223,  232,  247,  258, 

264,    265 

Richness  of  cream,  102 
Roof,  36 

flat  roof,  36 

gravel  roof,  36 


Roof,  pitched  roof,  37 
prepared  roofing,  36 
tin  roof,  36 

Rotary  pump,  161 

Routes,  105,  114 

Route  sheet,  244 

Rural  business,  7 

Salesman,  226,  233,  286,  324 

Salesmanship,  226 

Sales  record,  239,  341,  343 

Sales  ticket,  239,  241,  242 

Salt  control,  176 

Salt  in  butter,  174 

Salt  test,  178 

Sandstone,  53 

Sanitation,    8 

Sawdust,  54 

Scales,    188 

Score  card  for  cream,  101 

Seals,  16,  no 

Septic  tank,  8,  44 

Sewage  disposal,  40 

catch  basin,  42 

cess  pool,  43 

septic  tank,  44 

sewer  system,  40 

sewer  traps,  41 
Shavings,  54 

Shipping  cream,   109,   121 
Shipping  ice  cream,  224,  254 
Shipping-tags,  no,  225 
Shrinkage  in  butter,  196 
Sight  draft,  6,  329 
Signs,  296 
Sills,  35 

Silver  nitrate,  178 
Simple  sirup,  217,  218 
Single  acting  compressor,  75 
Single  entry,  332 
Sinking  fund,  20 


358 


INDEX 


Siphon  trap,  42 
Skim  milk,  181 

formula  for  fat  loss,  182 
Smoke  bridging,  35 
Solid-packed  butter,  277 
Special  partner,   12 
Specific  heat,  65 
Standardization  of  cream,  204 
Statement,  241 
Stationery,  309 
Station  report,  120 
Steam,  131,  133,  143,  H4 
Steam  engine,  140,  164 
Stock  clerk,  128 
Stockholders,  16,  17,  23 
Stock  record,  344,  345,  346 
Storing  butter,  199,  250,  251 
Storing  cream,  210 
Storing  fruit  sirup,   215 
Strawberry,  215,  216 
Street-railway  cards,  297 
Sugar,  211 

Sulphuric  dioxide,  68 
Superintendent,  87,  90,  91 
Supplies,  123,  127,  128,  344 
Surplus  milk,  261 
Sweet  butter,  175 

Tahiti  vanilla  bean,  212,  213 
Testing,   189 

artificial  extracts,  214 

glassware,  189 

reading  tests,  192 


Testing  samples,  190 

Time  draft,  329 

Time  keeping,  95 

Trade-mark,  250,  283,  289,  290 

Transferring   correspondence,   318 

Treasury  stock,   18 

Type,  303,  304 

Unsalted  butter,  175 

Vacancies,   16 
Vanilla  bean,  211 
Vanilla  extract,  211 

preparation,    212 

standard,  212 
Ventilation,  38 
Vestibule,  54 

Walls,  9,  31,  51,  56,  57,  60 
Waste,  260 
Water,  158 
Watered  stock,  18 
Water  pumps,  160 

air  lift,  161 

piston  pump,  161 

rotary  pump,  161 
Wholesale  milk,  264,  267 
Windows,  9,  53,  62 
Working  capital,  5,  6 
Wrapping  butter,  279 

Zinc  etchings,  305 


Printed  in  the  United  States  of  America 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN  INITIAL  FINE  OF  25  GENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.OO  ON  THE  SEVENTH  DAY 
OVERDUE. 


da  1 8  '39 


JUN  3-    W 

FEB  2  1  1947 

R  E  S  E  R 


LIBRARY,    BRANCH    OF   THE    COLLEGE   OF   AGRICULTURE 

5w-9,'35(s) 


c; 


3 dk 

UNIVERSITY  OF  CALIFORNIA  L18RARV 


